Ok, so I kind of suspected that's where you were at.

There are several good Koni base coilover kits, Jay at Ground Control or Kayle at TC Kline can set you up. I'm running TC's Smart Design double adjustable coilovers (~$2300) with TC's camber plates. Most people like Terry Vorshlag's camber plates better (bearing noise) but TC's camber plates have a shorter stack heigh. On the rear, you'll want the harder durometer urethane subframe bushings, make sure you get z3 bushings and not e-30's. I'm using Jeff Ireland's race urethane subframe bushings, keep the differential bushing stock. Before you remove the rear subframe have an alignment done on it and record where it is now, then with it removed you'll want to weld in camber and toe adjustors. I think the toe get's ~1/4" and the camber is 2.5* adjustment. Ireland engineering is also the source for the camber and toe adjustors, I like the ecentric's but I've had them loosen on me. Once this is done you can adjust camber and toe on front and back and castor on the front.

If you've still got the stock motor computer, I've found that Randy Muller at Epic Motorsports (avalible throught Bimmerworld) has a cable that can read codes, but also program the computer througt the OBDII port. It's a good way to go given that you'll be looking to increase the rev limit, remove the top speed limiter, and possibly remove the emobilizer system. Headers for the 2.8 are easy to find on e-bay, I'm assuming this is an early single vanos motor? If it's the double vanos Josh Sirota managed to find a set that worked from e-bay also. Get a merge 2-into-1 collector, muffler and 3" tubing and some time at a muffler shop and you'll be set with an exhaust. Maybe replace the intake filter box with a custom K&N, found at Bimmerworld, or delete the traction control throttle with one of their silicone elbows. Typically, there are a few small things you can do to the motor, but nothings going to give you a large gain. This is because the single vanos intake manifold was designed to limit hp for a torque gain. Since IT now allows aftermarket motor and transmission mounts, I'd use the delrin motor mounts from Vorshlag and his 95a durrometer transmission mounts. With these changed the shift pattern won't move and cause you to put the trasmission in a lower gear while accelerating (money shift).

I went to STU partly because the intake manifold issue with the single vanos 2.8 was addressed by swapping in the older 2.5liter motor, also I left IT because at the time the oe motor mounts were required, and finally I hate (hate's not too strong a word in this situation) the oe-dual mass flywheel it's so heavy it makes the motor rev very slowly, the rubber biscuit doesn't hold up, and they're one time use can't resurface them. Some links for your surfing pleasure:

http://www.tcklineracing.com/index.c...y&Category=287

Ireland Engineering: http://www.bmw2002.com/

Vorshalg: http://www.vorshlag.com/

Bimmerworld: http://www.bimmerworld.com/

VAC Motorsports: http://store.vacmotorsports.com/storefront.aspx