I've been tired of all the problems that I have with my 318 (not to many but really annoying ones). So a few months ago I decided to start buying parts to fix the problems. For my mini project heres what I am going to accomplish over the next few weeks.
Heater core- mine leaks really bad
I'm going to clean my carpets really well- due to a leaking heater core they got dirty
Going to fix the little bit of rust on my driver side floor board- my heater core once again
I acquired a 2002ti motor-my 1.8L is coming out for a rebuild
Found a 5 speed and drive shaft off a 82 e21
Polyurethane steering rack bushings
Bought a nice set of 323i bilsteins for the front
Set of Intrax lowering springs
Sachs clutch
Front brake pads, rotors, and calipers
A 2.25" mandrel bent header back exhaust
If there is anything else you guys think I should do while I'm doing all this please let me know. Ill try to post pics pretty regularly.

I got started on it today about noon. I got my air box out to inspect my heater core to see which one to buy (behr, sofica). It turns out I need the sofica so on monday I'll place my order for it. Not to many difficulties getting the heater core out. It took about one hour to do this and inspecting all of the other parts connected to the assembly. Now with that out I'll beable to pull the carpet out easier. I'll do that tomorrow.

Why 323 Bils for your 318?

I got the bilsteins dirt cheap. They will also go in my strut tubes. If I did decide to go with 320i bilsteins I'd have to get that locater nut that 323i guys use. I also kind of like the idea of having a pretty firm front end. If I do decide that the 323i shocks are to firm for my likings I'll pull them out and sell them on here then go with the 320i shocks. It's not very difficult to pull the struts out, so I figured that I'd experiment with the shocks I already have.

You already switched to 323i strut tubes?

Nope didn't have to switch the strut tubes. The stock ones worked great. As far as I know 323i struts have bigger spindles, so you have to get bigger wheel bearings. My strut that has the 323i shock in it needed wheel bearings so I bought some for a 78 320i. They work great. I have the small spindle but big strut tube:dunno. I didn't think the shocks would fit but I tried and they fit rite in.
http://a734.ac-images.myspacecdn.com/images01/12/l_dbeabfa7e06e5d80195bccb6a290df1d.jpg
The shock next to the strut is a boge that was in it.

I got a little bit more work done on the car over the weekend. I got my engine and transmission out. It took a couple of hours to do but pretty easy.
http://i44.photobucket.com/albums/f9/onesimo58/HPIM0158.jpg http://i44.photobucket.com/albums/f9/onesimo58/HPIM0159.jpg
Gotta love old 1.8L m10's. I went to swap over the intake manifold and carb but I ran into this problem.
http://i44.photobucket.com/albums/f9/onesimo58/HPIM0162.jpg
There was a big difference in sizes of the ports. I'm going to use my carb, but luckily I had a 2002 intake in the garage just waiting to be used.
http://i44.photobucket.com/albums/f9/onesimo58/HPIM0163.jpg
My pretty new engine just waiting to go in.
http://i44.photobucket.com/albums/f9/onesimo58/HPIM0164.jpg
Gotta love how high the car sits with out an engine.
When I get a little more done next weekend I'll post a few more pics.

Excellent, a good season for motor swaps! If you are doing your brakes maybe you'll want to do new soft lines to the corners if they have never been replaced.

I replaced them a few months back with stainless steel lines. I found a new set on ebay for $50 so I bought them. Thanks though.

Now that I think of it, I'm gonna pull the front cross member so I can do my steering rack bushings and clean it up a little. While thats out I've decided to do a little undercoating. In a few places it's down to bare metal so I want to get that taken care of before I have rust issues.
I've got a quick question about steering rack bushings. Do you only need 2 bushings or 4? I ordered a set of polyurethane bushings from bavauto and this is what I received.
http://i44.photobucket.com/albums/f9/onesimo58/DSC00166.jpg
I think they sent me 2 too many.

You only need 2....and I want the other 2! Looks like they accidentally sent 2 sets. You wanna sell them?

damn...lucky ...good call Layne...you beat me...