I put a K&N cone on mine and went out to Home Depot and bought some materials and made a custom heat sheild and also made a scoop right into the intake bay. I like the sound and it has opened up my e30.
It stays pretty cool inside the intake Bay. You won't get the sound from a drop in if that is what you are looking for.
Past: 1998 323is (E36)
1986 325e (E30)
Present: 1997 Jetta GLX VR6
2004 325iT (E46) (pops)