I have decided just to make a thread about this car rather than do updates in individual postings...
The car... 1998 318ti with 1995 M3 S50... and stock everything else...
The AFE intake is gone and a conforti is on the way. The fit on the AFE was terrible, I will not be buying afe anything for a long long time. We replaced the Vanos unit today using a Dr. Vanos Stage 2 kit. It went very smoothly but all the noise was not gone. I believe there is a lifter or two making a racket... I am going to run some engine cleaner then switch to a lower weight oil and see if that does the trick.
The car runs very very strong. In current trim it is supposed to have around 280 hp. I refuse to wash it or put the engine covers back on until it runs perfect!