Souk: a trackworthy e30 for under $2000 is a tad optimistic. The $1000 cars out there have other things that will need to be fixed before being put on the track. Decent examples of i-powered cars are looking more like $2500, then at least $800 for new springs/dampers and freshened mounts and hardware. $3000 for a trackable e30 is about the lowest I would expect, and even then it wouldn't be fully sorted.
These cars are a bargain for the fun-ness, but they ain't that cheap!
lendaddy: 2-cam 4-cyls were the M42 ('91 '95 in this country) and 1-cam 4cyls were the m10 (late 60s - 1985 I think in this country). Your bro has the M42, which is a very cool motor. If he has a car with sport seats and an LSD, that car is highly sought after. Even with a bad head, it should command some decent money if he chooses to sell it.
Terry: I still say paint it pink!