you'll probably ask me more on MSN, but w/e.
1. armrests cost $$$. get an upholsterer to make you a new pillow.
2. frayed wire, definitely. that circuit is pretty foolproof.
3. i bitched at one of mine for a while before it came out. but on my uncle's e36, it came out in several pieces. yay fun. shouldnt be too hard.
4A-F. Its your winter car. Don't spend money on it you don't have to. The squeal at a certain RPM could be a shot bearing in the a/c compressor, mine used to do that. If your looking to keep reliability (always a must in a winter car) then i'd keep engine mods on a need-to-do level. everyone wants their car to go fast. the 4:10's will help, but i think you might be happy with the engine as-is.
5. I'm looking into this. should be able to get you some, as apparently one tube is enough to last a lifetime. its made by dow cornell.
6. the iX reservoir goes right by the firewall on the passenger side.
7. smash the hell outta them, then get OEM smileys. hehe.
8. MAYBE. there's a guy on e30tech whos selling a stahl header that apparently fits fine.
9. does the CEL turn on when you turn the ignition ON without starting the car? the bulb may be burned out.
10. no idea.
11. some do, some don't. both of my 2doors' do. apparently its not worth the effort.
12. get whatever you like. steering wheels are a personal thing. ebay!
13. nope. i ripped out the little metal pieces on the sides, and use it for a change holder. holds about $150 in loonies and toonies lol
14. easy, i did it on my buddys. i could do yours too.
15. just get a new assembly, like rudy said.
plus i think i have all the parts you need, and some you dont know you need yet