It looks like a M50 is cheaper than I thought, it looks like a running drivable 92-95 325i can be had for $2,000, and a non drivable 325i is even cheaper.
You guys do have a good point, if I am going to the trouble of an OBD1 swap, plus swapping over pretty much the entire drivetrain (Engine, Transmission, and differential), I might as well find a manual 325i parts car and use that.
mphmotorwerks, is this the 325i you picked up?
http://minneapolis.craigslist.org/pts/541710607.html I guess I will need to keep an eye out for another deal like that.
I live on a farm near Hutchinson MN, about an hour and 20 minutes north of Mankato.