I'm thinking about this one too, but would rather hold out for a 510 or something asian (my wheelhouse), so might not. ANyhow, here's a link to his post. I suspect he'd probably go down to $250 or so on it, could be a good lemons car.
http://washingtondc.craigslist.org/mld/cto/1583236607.html
also a thread I posted here inquiring about the problems and with some email discussion with seller..
http://grassrootsmotorsports.com/forum/grm/bmw-320i-77-question/18590/page1/
If someone really wants it, go get it....I'm not taking dibs at this time!