Regarding your question, re 328 vs 335i.
The consensus seems to be the 328i is notably more fun with the manual than the 328i auto. I tried an 328i auto with manual shifting on a quiet country road, revving it up well, and that motor is so smooth and sounds terrific! It also feels a little lighter than the 335i.
But the 335i just has so much torque that it's worth the extra $ for the upgrade IMHO. It's just another type of experience. I have driven an E92 M3 *hard*, and that thing has more than enough torque (and goes deceptively fast).... but the "feeling" of the torque down low in the 335i is another type of "pull you back into your seat" pleasure that even the best naturally aspirated engines cannot give you. It only has slightly worse gas mileage than a 328i.
On the flip slip, you press the gas and wham!, 2 seconds later, you've passed the speed limit. The 328i might give you a better opportunity to roll through the gears and rev the motor?
If an E46 M3 is a possibility, I would recommend a 2005 or 2006. In addition to having the least problems and being the most well-sorted of that generation, it should also have the lowest miles and have better price/year & mileage ratio than older M3's, as depreciation really slows down the farther away you get from the 3-4 first years of a used car. The problem of course is with selection. I was casually looking for a while but have given up.
