I picked up a 2001 325i Touring in November and I'm really happy with it. I get about 25mpg commuting 50 miles a day in Atlanta traffic. I looked at the 5-Series wagons but clean ones were pretty pricey and I wanted the straight 6 instead of the V8 in the 540i so that cuts out a good portion of the wagons.
I had to look a while to find one with a manual transmission but it is pretty fun to drive. Not much power but it has the sport package and it really hangs on in the corners.
E46 T by
willtel, on Flickr
325iT by
willtel, on Flickr