You get sooo much more car for you money AS STANDARD. You know with an iS that it has all those goodies if not more. Seats, interior trim, exterior trim. It has 325 bits, a 50:50 weight distribution, 16v with alu engine parts helping reduce weight, all round disk brakes, sport seats oh did I say as STANDARD, problem is with both is that they are between 16 and 25 odd years old the are lots of crap examples of both BUT find a good 318i and 318iS for the same money, say £1500, the end result will be that the iS is the outright winner.
In context, go and buy a 325 and mod the hell out it as this will be much more rewarding, spending a load of money on doing bits to a 1.8 engine is ultimately limited to what you can achieve so the measure is already set so low if moding is your thing you are better off elsewhere in the first place.
HOWEVER
I would also argue over point that you cannot do tuning and changes to M10 over M42. There are potential changes to that that head closer to 200bhp which is not too shabby. Look at what tim_is has done converting to 2l, there are S42 like options, other engine changes which would comparable to money needed to be spent on the M10 to do the same.
So for me, a better engine - if looked after, more power, more car for your money, you ask 318i vs 318iS.......well I am biased so what do I know. but I still say 318iS!!!!!







