Again people that weren't there are speculating...
335(me) had the dusty lane(inner lane), and caught wheel spin off the start(watch closely after the cone, you will see a whole lot of dust behind the car).
This was our second race. The race before this 335 won by 4-5 cars, again, because M3 was in the dusty lane, and caught wheel spin.
In a fair race with a good start it would be a nail biter, but i have a feeling M3 would still edge it out by a nose or two.
As far as modding goes, both cars spent about the same amount of money under the hood.