Let's see if I can help here...
I have not driven a 318i four door, but a friend owns a 1997 318ti hatchback which I've driven several times for an extended duration (2-3 hours). Along the way I've done both highway and city driving at various speeds, and in a variety of weather conditions (rain, since there is no snow down here in south FL
). His is an automatic.
I've heard the complaints about the 1.8L/1.9L engine lacking oompf, and these are mildly justified, but not the extent you might expect. I found it satisfactory for most normal driving conditions, as it will accelerate to 60 as quickly as most typical family sedans will (around 9-10 sec for the Ti, a bit more for the four door) and reaches a top speed of nearly 120 mph. However, if you've got the "go fast" syndrome, you might not be pleased.
According to the literature I have, a 1993 E36 318i will do 0-60 in 11.3 seconds with an auto, and reach a rev-limited top speed of 128 mph. Acceleration is mediocre, but otherwise, not too shabby. As far as handling is concerned, the 318i is basically identical to any other 3 series car, save perhaps the M3.
1994's and later are artificially limited to 116 mph (although that can be removed with a chip).
The 325i, on the other hand, is a slightly different beast. A 1993 makes 189 horsepower and 181 lb-ft torque at peak levels, with a auto 0-60 time of 8.8 seconds. I would think you would be happiest with this, but maintenance will be a bit more. The 325 was also the upscale 3 series model at the time, so the examples you find will probably be better equipped than a comparable 318.