Transmission is sluggish although there is no slippage. 1st gear is just too slow to engage for a sports car.
Driver-side window has broken track. Window regulator OK, but will raise without some physical guidance.
Door locks have tendency to stop working. Seems to fix itself and just a nuisance.
Right corner light stopped working. Replaced bulb, but it's probably something more serious.
Headlight bulbs burn out every 6-8 months.
Really fun car to drive. Daily commuter and has never disappointed.
My list of problems are minor in my mind considering the delight I get from driving this car.
Corners exceptionally well. I would love a bit more low-end power, but you don't buy this car to race at every street corner. Just enjoy the experience.
I own a 1999 323is with a 5 speed, and I absolutely love it. When I bought it (Dec. 2004), I had a bad fog light too, mine was on the driver's side. My friend replaced the bulb, but nothing happened. However, I don't really have to worry about it anymore, because I was attacked by a large rubber cone and now have no fog lights at all ;)