There are more IMS discussions on the internet than anyone could read in a week. As Matt says for ~$2500 you can get a new clutch and upgraded bearing. Not that expensive when talking Porsche engines - from any era. Water pumps are probably the bigger issue for higher mile cars though the 3.6 motor upgrade lessened the risks of a departed plastic impeller blade creating a catastrophic blockage.
Here's my latest DD. A 2003, 124K miles, ORIGINAL clutch and IMS bearing, new PS2 rubber all round, carbon interior package, interior looks new. Paint is not original and is inferior but car shows no prior accidents physically or through documentation. Got it local for $16K. Not a killer deal but damn I think the car is amazing. The sounds it makes remind me of my '86 Carrera as does the general cockpit. Beyond that this 996 is really many levels better than my '86 in performance and daily comfort. IMO its just as sharp looking too. Maybe because it's black...YMMV.
