OK, well progress continues. I have a thread on E30tech also:
http://www.e30tech.com/forum/showthread.php?t=84891But here are the latest updates: I've welded a broken seat bracket, put in new half shafts, drive shaft, rear wheel bearings, and smiley lights (that I wired CORRECTLY). I'm in Germany now as well and have easy junk yard access to all the cool parts everyone raves about and pays a fortune for.
I also recovered the M Tech steering wheel in new leather, and have the caliper rebuild kits as well as SS lines to put in. I'm waiting for rotors and pads to do the brakes as I want to clean up and paint the calipers too.
There are a number of other little things like doing the LED light bar for the OBC, jumping the relays for independent fog lights and high beams to work correctly.
My next obsession after the brakes is going to be sound deadening. I'll be doing Raamat as it is the best bang for the buck and I don't want to have my car smell like a roof- it is black after all. My big goals for this car were economy and comfort in a package that is a hoot to drive. Part of comfort is quiet, so I'll be adding a substantial amount throughout the car.
Once that is done, I'll start to focus more on finishing getting all the cold weather package stuff together and installed before winter here. That will include heated mirrors and installing the heated seat stuff- which will mean most likely going through the recovering process. Also, I'll be installing the heated washer nozzles and getting the heated door lock setup installed.
Wheels and tires will be about this time and the basketweaves will be relegated to winter duty here and probably eventually track/autocross duty once I get home. After wheels and tires I'll start to direct my focus to the engine bay. The car runs great- much of why I bought it as I don't know the M42 all that well- but I'll be doing things like massive clean up to start moving to an electric fan, high temp thermostat, COP conversion and possibly removing the heater plate for the throttle body. I've already dropped the lower oil pan and sorted out that debacle (only 3 bolts laying in mine) and as I mentioned, the timing stuff has been done. After that, I'll be looking for a motor to rebuild over time and eventually install.


Excuse the sand blasting of the front end, but the German winters are HARSH. Paint and body will be done when I get back to the States in a couple years.
Recently I scored some cool stuff at a junk yard like full heated seat setup (harness, switches, elements), heated washer nozzles and full harness, rear foglight setup, and a ski pass through rear seat. I'll try to post updates, but check the E30tech one to keep up to date...