I have a pair of M20s that I've decided I'm not going to use after all. I got them with the intent of doing the Franken-M20 eta bottom end with 323i head in order to get the 'i' ports, 2.7L grunt, and the better compression ratio afforded by the 323i head as opposed to dropping a 325i head onto the eta bottom end.
The 323i engine is a junkyard unit of unknown origin. I bought it from someone who it was shipped to by mistake when he attempted to order a 320i engine for his son's car. It has the later '731' head casting with larger valves than the early '200' casting, though I believe still smaller than 325i ports.
The 325e engine I bought from someone I know and trust, and who told me that it was tired, though IIRC not making any nasty racket indicative of a violent end.
I viewed these engines as solid cores for building my engine. I would not expect either of them to be in good enough condition to bolt in and go. I'm noting here what I know about them, and I can make no further guarantees. $350 OBO for the pair. Located in Portland, OR.
Cheers,
Jesse