| Just presenting all sides of the argument...
We had a thread in the 5-series forum about this subject. The pros and cons of upgrading the differential.
An individual on bimmerforums.com put a 3.64 open in his e34, and he said he loses traction real quick in first and second. He went and bought a 3.15 LSD from diffsonline.com, and I'm waiting for his report so I can buy one from there, too.
He also said that with the 3.64 and a chip, he could still do 160 MPH+.
That sounds odd with such a high jump in gearing. | 
