george.m replied: "I would suggest you look for a reconditioned 1.8 or 2.0litre engine for yr car.This will save you alot of expenses later.
1.8litre is the correct power for E 46.
2.0litre is slightly more on power.
If you are looking for power and not fuel price,then go for 2.8litre engine and gearbox swap.
Your 1.6 engine may not last long with turbo and modifications.
take care."
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