I have a 318ti with 152k. Body/Paint isn't great, but I swapped the rear diff for a 2.93LSD and the front brakes to E46 325i units. With the lower gearing it made 37MPG on my last trip from utah to idaho.
It does need work, but I'm willing to price it accordingly. Email me with any other questions and I'll get you some pictures/info.
Thanks!
James
loosli@gmail.com