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Correctamundo on the gasket problem - it was corrected by 1993.
As a new member of the four-banger group around here, congrats and willkommen!
From all I have read, you are in luck as far as obtaining an E36 with few or little Gremlin activities to concern yourself with. The 318's never had the water pump problems or VANOS failures that the inline 6's have (sporadically) had, and are about as tried and true as BMW has been known for in the reliability department. One thing you may watch, though are your rear suspension bushings, as BMW beefed up the bushings on all multi-link rear suspensions in 1997, I believe, to compensate for an early wear problem which occured in all E36's, save for the 318ti's, which retained the semi-trailing arm rear suspension from the E30 days.
Other than that, happy motoring!
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