some issues, i had a 97 328i and i am sure it might relate to the 98 model.
Engine is bullet proof, of course do check and change your oil periodically. The instrument and radio display go bad. Mine went away instrument and radio @53k and 68k respectively.i mean not the lights but the actual display, so you will have to replace at least the instrument cluster or leave it if you don't care about the temp display and all.
Other than this only thing that really bothered me was first gear notchiness especially at stops and cold mornings, if you go low on engine oil, it sure becomes like hell trying to put it in first. it's however is a good indication of low engine oil.
Then the third gear is equally a hassle if shift fast into thirs from secnod but it's does'nt always happen.
Then a recall on faulty crankshaft position sensor, what happens here is a bit of delay in movement after you engage in first and gas it.
That's about it.
