I was kind of going through a similiar delemma with my 335i a while ago, I realized I could make alot of power from that motor and be "quicker" then a comparible year M car, due to it's torque and the very friendly turbo motor. Then I took my car to the track and realized that to make it handle the same as it's M counterpart would involve changing out almost everything in the suspension, not to mention mine was an auto which made it much worse. In the end I enjoyed the 335i for all of it's (upgraded) power and then accidentally found the perfect upgrade when the time was right. I say keep the 330 untill all the planets align just right and upgrade to the M3. BTW the E46 are AMAZING at the track, from what I have heard