Don't buy a 320i. It's slow and heavy on fuel. I can't comment on the potential issues - operator323 says there are, I'd go with that.
BMW has tighter steering, harder drive, less flashy interior. It's a driving machine with added on functionality. If you want a BMW for the name, don't buy one. If you want one for the safety, don't buy one. If you want the ultimate driving machine (which is generally expensive to maintain), buy a BMW. A Honda Accord tourer 2.4i is bigger, has more standard features, is powerful enough and is more comfy on the road. And they're not expensive. For example.
Good luck! And seriously, go drive the 325i...