The car I am reviewing is an E46 330d SE Saloon, 2003 model with 204hp and Auto gearbox. After having many FWD cars and one 4WD, I wanted to try a RWD and this fit the bill nicely.
We tried a Sport model but found the ride too firm for our needs, although if you can put up with that it no doubt goes round corners a bit quicker.
Obviously this model is superceeded now, but it remains a smooth, tight drive with torque by the bucket load. Mated to the Auto it is a relaxing drive with superb mid-range acceleration and high 30's MPG. Problems (covered by warranty) have been replacement Auto box and a leaking injector. Since then it has been reliable and reasonably priced to run. There is a reported issue with inlet manifold swirl flaps failing, which have been re-designed on E90 model cars.
It could be roomier in the back, but is fine for 2 normal size adults.
We are looking to replace the car in 2009 with a BMW 3-series Touring due to our growing family needs.