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I test drove a '05 Carrera S after I sold my E46 M3. It definitely didn't feel like an upgrade and while it was a fun ride I was overall disappointed. The E9x is a lot more car. I'd take a healthy E46 M3 over a 997.1 (and know someone who actually did this trade).
Short of a turbo or GT3 you'll be disappointed IMHO.
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