Update time.
The first thing on my plate has been to beat back the ever advancing tide of rust. The three big ones were both back shock towers (both cut out and replaced) and the sill. This sill is the last chunk of rust on this car I care about. There's one more on one of the front fenders, but I'm going to avoid giving a E36 M3 about that particular fender by going to the junkyard, buying spares and modifying them for improved cooling and aerodynamics. More on that later.
So, without further ado, the adventures in sill repair.
First, I took a wire brush to this little spot of rust and discovered a collection of absolute horrors. The sill was packed with salt and rust - there must have been five pounds of loose crap I pulled out. Someone's idea of a "repair" in the past had evidently been to stuff the sill with cardboard and then slather a bunch of bondo OVER the rust. Once I got through the bondo I found four separate holes completely rusted through and the cancer was getting close to affecting the structural parts of the unibody.
So I panicked. I pulled out the cutting wheels and sliced off everything that looked even slightly suspicious. I was in that fugue state of mind where you are somehow both aware and unwilling to admit that you should probably not be cutting the bodywork off your daily driver with an angle grinder.
I spent the next couple of days driving around town with enormous grinder-holes in the sill, collecting necessary tools and materials, doing grad school stuff and reading Joey M's 32 Datsun build thread for inspiration. I also used a pressure washer to clean out any remaining gunk I couldn't get with my fingers.
After several unsuccessful trips to used furniture stores, apartment complex trash heaps and the construction zone around a local middle school, I finally stumbled upon a recycling center that looked promising. I talked to the owners and after a little finagling they agreed to let me poke around their scrap piles. There, glimmering among the decaying refrigerators and toxic sludge puddles, was a glorious heated floor panel. It was perfectly flat, made of stainless steel roughly the same gauge as Daewoo body panels and mine for the princely sum of $1.78.
I took it home, cut it into strips and removed all the electrical/foam/thermal gubbins. With the materials ready I once more went into my apartment's underground parking garage, pulled out my collection of hammers, fired up the drill and prepared the rivet gun.
Basically I used the original body structure to provide a shape and then drilled holes into the good metal surrounding the voids I'd cut out. I then riveted the patch panel into place along the top edge, bent the patch around the remaining structure and then riveted it onto the bottom of the sill. After about three hours of grinding oil, sand and steel dust into my armpits, the whole thing looked suspiciously like a healthy body panel.
Granted, the color isn't an exact match (gold patch, white car) and the panel doesn't perfectly blend with the original sheetmetal, but I think with a little bit of correctly applied bondo and a respray (which the car badly needs anyway), it will look pretty respectable. This is what it looks like now, sans bondo and respray.
In less depressing news, oil cooler!