Great car, you can do no wrong with the E46 M3(if properly maintained!!).
That will also be my next daily driver. I have a 330i with some Dinan mods now and was thinking of a used 996 or 997 if I could swing it.
I decided with the age issues of the 996 engines lurking like a ticking time bomb and the fact I have three kids the M3 won out.
See this thread:
http://forums.pelicanparts.com/showthread.php?t=439936
Now only if I can afford the new M3 sedan....