I'm a 2002 guy, so I will say the M10 engine used in the 318i is a great engine and very modifcation friendly. BUT: the E30 is a heavy car compared to a 2002, and the 4-cylinder engine is working hard to move the weight. You can modify it to produce a lot of power, but not as much reliable power as a chipped 325i. It would cost thousands to rebuild and modify the four in the 318, and this money would be better spent toward the purchase of a nice 325i or is. You can get a decent one for $4000, and a really nice one for $6000. If that is absolutely out of range for you, look at a 325e or es. They can be had in decent shape for $2500 and in nice shape for $4000. They are not as fast as the "i" models, but are much faster that the four cylinder E30s, and they can be modified quite easily with "i" cams, throttle bodies, aftermarket chips, etc. Good Luck Colin