Clutchy, it does not even really need to be modded, particularly if its a daily drive.
My 730d is bone stock and a very heavy car, and you are witness to the amount of acceleration that it can produce.
M_Pow, comparing a 330d to a E36 M3 is not that obsense, particularly if you are comparing power on a daily drive. Track toy/high speed, yes, two very differant animals, but every day cruising, you would actually be amazed by the 330d.
I suggest going to go and drive one, either a E39 530d and do the preventative maint, or a E46 330d, just to keep your options open, you can pop past my place as well and take my E65 for a spin, and I got a feeling you would be very surprised with the handling/performance.