Good weather this weekend so I have started tidying up the 325i...getting there.
So far I've given the interior a good clean and applied some Chelsea Leather Food to the seats (and steering wheel). It's just what happened to be lying around but I can confirm that it's good stuff. Seats are softer and less creaky without looking or smelling obviously like they've been treated.
The red paint was predictably faded, tar speckled and dull. The worst bits (bonnet and top of the wings) have been T-Cut and I've been using Mer on the less affected areas. A lot of people seem to diss Mer but I find it easy to use and very forgiving (it's good on plastic bits too and doesn't leave loads of white splodges over the car). My grandad used to swear by it

. Anyway, it's coming up nice - old BMW paint is fantastic quality stuff.
Lots more to do...I will keep this thread updated as I get on with it.