Hi,
I'm located in Phoenix, AZ. The swap is going slow but making progress. The engines in both cars are 2.0 liters so there wont be a huge power increase. I'm sure it will run a hell of a lot better however due to a low mileage engine, with good rings and gaskets. I believe your car may be a 1.8 so there may be more of a power increase with your swap. I purchased a Ireland Engineering shorty header to replace the stock exhaust manifold so that should add a little bit of power and reduce weight. What I've done so far is prep the 320i for the engine to be removed. I disconnected, exhaust, all lines an hoses to engine, radiator and took off the fuel injection because I'm going to place my weber on the new engine for now. It's amazing how much weight all the fuel injection and intake bits add to the engine. I also already swapped the 320is LSD rear diff in my car. Thats a pretty sweet little upgrade for my 2002. The LSD swap took a little bit of additional work to the cv axles cause the 320 cv joints have different bolt sizes than the 2002. Had to modify the cv axles to have 2002 joints on the outside and 320 joints on the inside. Not a super difficult job but real greasy. I finally picked up a engine hoist and two engine stands on craigslist for $100 and will pull the 320 engine next week. The only major change to the engine ill have to do is swapping oil pans and oil pickups. I've been told its a pretty straight forward swap. Im also collecting the parts for the 5 speed swap. I'll have to modify the driveshaft and shifter plate. But Ill tackle that when I put the engine and trans in the 2002.