ST, you seem to be in a similar situation to the one I found myself in a few months ago. Since the days of watching Deon Joubert guide the "Envirocar" around Killarney Racetrack, I was convinced that I would own an E36 someday. The car's tone also had to vaguely resemble the sound of Tony Vianna's Winfield 325iS (so the 4 pots were eliminated from the equation, unfortunately).
The 328i seemed to be the perfect combination of power, comfort, practicality and insanity for someone wanting to live the dream on a shoestring budget.
I went to look at a few and quickly grew despondent as the condition of the examples that I looked at were not what I was hoping for. I then shifted my focus to the E46 328i and 330i. The condition of the newer models were much better and the ride was extremely comfortable and refined. That was the problem...it was almost too refined!! I wanted the feedback and neutrality of the E36.
I kept looking and eventually found a decent example of '96 model with 170K on the clock. The suspension needed a bit of attention (I think about 90% of them will!) and the driver's seat needs a panel or two replaced. I took the plunge and parted with my hard-earned cash and I haven't had a minutes regret since!
Hang in there...your dream car is out there waiting for you to find her.
Oh...sorry about the long post... It is my first and I have been browsing for about a year so... It grew interest!