I'm not aware of any way to know with absolute certainty which IMS a 997 has. You can narrow down based on VIN and engine SN, but eventually you have to verify visually.
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Having owned a 996, (early, modded coupe), and driven a 997, I can say that the 997 seemed like a pretty huge improvement in nearly every way. From the obvious improvement in looks and interior to the increased power, active suspension, (perceived) better build quality, etc., it seemed not at all similar to a 996 to me. And I really liked my 996. It was a tough car.
Granted, my 996 was a beat-up example but it was still tight and I've also driven cream puff 996s. The 997 dash, especially without the sport chrono option, is one of the best looking 911 dashboards ever, IMO. The 996 is the worst. Same with the 996 door panels, etc. If all you care about is performance:buck and don't care about aesthetics, buy a beater Z-06 'vette. That will walk all over a stock 997. But who wants to live in that interior?
I think the 997 was a sweet spot for 911s, they are now overboard with technology, (almost) no manual trans, etc.
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I totally agree on styling. But if you drive a late 996.2 and early 997.1, apples to apples, they are very similar driving cars. Underneath when turning wrenches they are nearly identical. Start adding goodies and all bets are off. PASM, Sport Chrono, and the S all give the 997 an edge. But they aren't cheap either.
I think someday the 997 will occupy a 993 like space in the waterpumper market. The 991 is more GT and not DIY friendly, the 996 isn't nearly as pretty.