The few articles I read about the I head conversion used the euro 323i head not the 325i. Didnt seem to have clearence issuses but who knows. I haven't seen it done either. Check
www.r3vlimited.com
There are some threads regarding the swap. But expect to deal with a ton of smartasss 18 yr old punks, lol.
Paint wise I have also been considering Gulf Blue.....hmmmm