He's talking about road racing, its very popular and competitive up north.

Anyway, about the 325, Since it is a 5 speed i wouldnt worry too much about changing out the tranny. What you may want to look into is purchasing either a M3 clutch or aftermarket clutch. Also, as far as the blocks are concerned, since your motor has vanos you can easily put either a 3.0L or 3.2L M3 block underneath it.

The M3 engines have different hp #'s depending on what year it is and where it was built. Back in 95 the M3 engines were 3.0L's with 240hp. The new M3 engines are 3.2L with 333hp. I know you are probably going to ask what the differences are so ill tell you a few of them now.

The older M3 engines had a single vanos system on the intake cam where as the new M3 engines have vanos on both the intake and exhuast cams. Also, the new M3 motor of course is a 3.2L compared to the older 3.0L, and one last comparison is that the new M3 engine comes from the factory with individual throttle body's whereas the older M3 motor only comes with a single throttle body setup.

A couple of simple and quick performance upgrades for your car would be intake/headers/exhaust/M3 cams/and a custom burned chip for the M3 cams. With those mods you should really see a large difference in your motor. If you have anymore questions let me know .