Biggest difference is that 325 is OBDI and 328 is OBDII. OBDII was a mandate to fulfill stricter emissions standards which in turn makes the car more restricted to modding. Hence the increase in engine displacement and only officially 1 more horsepower.. just take a look at the intake manifold- the 328 is almost half as small as the 325's M50 intake manifold. THe 328 does have more torque so it is quicker off the line- BUT you can buy a TMS chip for the 325 and compensate for that. So far as to say I love my 325 and wouldnt trade up to a 328.. They are both awsome cars but I have my preference..
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BMW Werkz
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