have it checked out. 2.8L e36's are wondeful dailies. I get 650+ highway kms on mine (having fun), and they're comfortable enough to drive every day.
You'll miss the torque of the LS1, though.
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2002 TiAg M3 6mt
deoranged, dechromed, led tails, ZHP knob, UUC SS v3, GROM, OEM 220M 19's, Michelin Supersports
2006 YZF-R6, bunch of go-fast stuff