This is a pretty much stock 323i, manual transmission of course (did they make an automatic?), imported back in 1985.

Upgrades:

I installed a Pioneer DEH-p560MP head unit to replace the stolen factory unit. I also installed an Audiobahn A6004T amplifier and an Infinity 5010cs component speaker system in the front. I'm trying to decide whether to install some high-powered mid-bass units in the rear (5.25") or a pair of low-powered coaxials, running off the head unit and use the remaining two channels on the amp for a sub (bridged, that's 300 Watts at 4 ohms, enough for a decent Infinity sub).
I upgraded the tires to Yokohama AVS ES 100s (still in 195 60 R 14 size with original bottlecap wheels).

Most of my focus now is just trying to restore the exterior back to looking respectable (the car looks a better in the pictures than it does in real life). Check out page 2 for details and pics from my recent rust-repair. It's pretty fun to drive, and sounds nice, but is definitely only a summer car. There will most likely be no extensive mods, as I appreciate this car's originality more than its tunability.

Fighting minor body rust

The seats are a little the worse for wear, so I have chintzy vinyl covers on right now

The miles aren't that bad for a 20 year old car.

Recent Repairs:

Back in March, I tried to have the car inspected, but it failed due to a broken sway-bar link. It turns out someone tried to weld the link to the control-arm, and now both units had to be replaced. I decided to do the control-arms on both sides and replace the bushings at the same time as well. Here's a pic of the broken/welded sway-bar link.

This car has also had some pretty bad overheating problems when in traffic. I discovered this is party due to the auxilary cooling fan not turning on. Both temperature switches appeared to be working, so I think the problem is coolant not reaching the switches. There must be a blockage in part of the radiator. I wired up a switch that allows me to turn on the auxilary cooling fan from the cabin. I also bought a radiator from a junkyard ($14, had it pressure tested and flushed at a shop and everything is good. I think that might have been the best deal ever), but haven't installed it yet.