so i originally bought the 318 for exactly what it is, a economy car that looks nice, after owning it for around a year,i'm kind of getting power hungry again (i'm starting to miss that chevy 350 powered s10 that i sold), as much as i would love to put an ls1 in my car , i just do not have the funds for that. I was thinking of swapping in a 325i m50 ,the mileage on the motor is not a concern,as i am going to get the engine bored, and basically build the hell out of it before i put it in the car. i just have a few questions ( yes i've searched just can't find a definite answer to some of these) ok so can i use my 318i tranny? engine mounts? rear end? are their any small things that i will need, and is this install a pita?. i'm just trying to get the easiest swap possible. AND TELLING ME TO GO BUY A 325I IS NOT AN OPTION

Just follow this dudes budget buildup. Its a Ti so its a little different but the engine swap info applies. I hope your are a DYI'er or you'll be spending alot.

http://forums.bimmerforums.com/forum/showthread.php?t=831204

yes i've searched just can't find a definite answer to some of these) ok so can i use my 318i tranny? engine mounts? rear end? are their any small things that i will need, and is this install a pita?. i'm just trying to get the easiest swap possible. AND TELLING ME TO GO BUY A 325I IS NOT AN OPTION

I'd upgrade the differential to a 6cyl diff since the 318 used a small case diff, and I'd also upgrade to 6cyl half shafts (just find some used ones and have them rebuilt).

do the m3 brake swap

do the m3 rear end swap (including axles)

and snatch a used zf 5 speed

your getrag tranny is the same out of a 325 or any other e36 except the M3 and the 328, they get the ZF's factory. so you can just drop the motor in, and do everything one stage at a time and should be ok. your current drivetrain is good up to just around 200hp. and once you do a conversion to the larger axles and toughened tranny, you'll be good until you hit the 600 mark, so you should have plenty of room. if you do the rear end swap before you do the tranny swap, then you might have to take your drive shaft to your local machine shop and get them to shorten it and rebalance it.

since you mentioned boring it and building the m50....this is what i was going to do before i sold my 325i

http://www.zionsvilleautosport.com/store/static/3.03.2SK.htm

you have on your hands a great project, not to hard, and can be done one step at a time to save money. this is the kind of project i've been wanting to keep me busy in my spare time. and talk about a sleeper if you build that engine right.