You'd fit right in with the E30 M3 purists...god forbid anyone takes an s14 out of an M3.
I think you missed my point. I'm absolutely all for reincarnating a wrecked car's motor into another machine, but the 318is is so very rare these days- especially ones in the condition you have brought yours to.
I know it's a slippery slope what with the 5 lug conversion and the like and just how "correct" one should keep a car. I also know based on what I've seen, you are a good wrench and do great work. But, it is a little different when you do a heart transplant and completely change the characteristics of a car (I'm speaking primarily chassis). Also, the M42 is becoming a pretty rare motor these days, so I guess my point is why not do it to a 325i instead? The 318is was only offered 1 year in the states and the M20 powered cars for about a millennium, and the chassis wouldn't be that different with a monster motor like that in a 325i. Just my $.02. I'm sure it will turn out great, but I'm just a little sad to see yet another M42 tossed aside. (And to be selfish, if I was still in the states as I'd probably look to buy yours

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In terms of the M3, well I have to say I really don't have an opinion. I know I'll be thought of as crazy, but the E30 M3 does not appeal to me. I've driven them in anger and they were no quicker (stock) than one of my 325is'. The reasons I got into E30s are that they are dirt cheap, economical, reliable, cool, and had a lot of toys OEM and aftermarket. The E30 M3 fills none of these except aftermarket. $20k into a car just for a high strung and (relatively) unreliable motor and a body kit doesn't really fit that need. I'll spend a few grand more and get an E46 or a few grand less and get a legitimately nice car in an E34 M5.
The check panel is not wired in, it came free with my headlights, grilles, and plate filler and I was sick of seeing the SRS light flash because of my Mtech 2 wheel.
OK, thanks for the info as I know wiring one in would be a bear. I think I'm actually going to mount a GPS up there in mine...