I'm about to order a set of ccw's and have some conflicting numbers from what the lady at CCW has told me.

all of the e36 m3 wheels i've seen for the front are ET 41 (17 x 7.5)

They are telling me they typically do 35, which is about a 1/4" less offset, and would bring the wheel closer to the strut.

I think there is room, but does that make sense?

I believe that a lower offset will bring the rim closer to the fender

I believe that a lower offset will bring the rim closer to the fender

He's right. The lower offset means it would have more lip and a smaller barrel compared to the 40's offset rim. This would put the wheel closer to the fender and farther from the strut.