Auto Parts: Bmw 325e engine replacement, limited slip differential, holden commodore

Question
Hey i was wondering my 1986' bmw 325e is gutless and i wannt put a new engine and i want to convert it to a manual, i was wondering what would be the best combonation of engine, transmission and rear diff? im looking for a good type of engine like a holden commodore or toyota engine.

Thanks Kieran

Answer
    Holy crap!  Look, if you want to change the engine in your Bimmer, don't even think about using something other than a BMW engine.  I mean, you COULD put anything in there, if you're a proficient welder and a good engineer, but it would be a colossal expense and time-waster.  Just find a 3 liter engine from a newer model, or even an M3 powerplant if you can score one.  Get one from a stick-shift car and get the trans with it.  Then all you have to do is get a driveshaft cut to fit (and you may get lucky and find one that will fit, depending on the parts combo that you end up with).  Don't even think about changing the rear end.  If you end up with enough power to spin a rear tire every time you take off, then you could scare up a limited-slip differential, probably a nice used one, for the original housing.  Unless the car is immaculate and wonderfully painted, you'd be a lot better off selling it to an old guy (the 325e and the 525e were really not aimed at the enthusiast segment of the market) and buy a nice used M3.  I believe you will find that the other advantages to the M model will far outweigh any difference in cost, and the engine swap would certainly cost far more.