No the diff actually broke!!! When we got it checked out the second my mechanic checked it out, we could instantly see that it had failed and seized up. I have taken many driving courses and kick ass at control in many cars including many drifts, slides and such in my dad's 325i and my mom's e46 M3, all in safe controlled driving environments for skidding schools and training courses. I know how to throw around all of these cars especially mine and control them perfectly( I'm not talking about sand around a 10 mile per hour corner)and it truely was not driver error. There was no way of not hitting the curb because otherwise I would have killed the guy next to me since the road is so tight and there is no where to go...
The cop was proud of me because he has said that so many people who have tried speeding around the corner and not taking it at or below the speedlimit usually end up in the 10 foot dip to the right of the street or take out the whole fence. He was astonished by my sense of control and what minimal damage cosmetically happened to the car. The only reason it is totaled is because the car is lowered and caught the oil pan on a large curb.
I am currently looking for an engine in my area (Massachusetts) and really want to build the car back because all it needs to get back on the street is an engine (didn't break a light, or suspension part and the chasis is still square).
I'm thinking the best mod will be a new steering rack (e30 M3 is probs the best bet).
If anyone knows of an engine no farther than 300 miles from Massachusetts, please let me know.