I am Teh Edumacator.
Join Date: May 2005
Location: ATL, London, and Barcelona
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1. It sounds like you are paying a bit much, but if maintenance records are good, go for it.
2. Not terribly hard, as long as you hook up with a good shop and talk to members here about audio/video options.
3. The six cylinder is a very reliable engine. On the other hand, cooling issues, including radiator, thermostat, water pump, and cooling expansion tank may be things you should be worried about.
4. See what necessary maintenance is first. After that, there are a lot of options available.
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1999 E39 540i/6-VF Stage 1 S/C, Dinan exhaust, Dinan strut+shock braces, Dinan ltwt flywheel + clutch, Dinan Brembo BBK, Dinan monoball, H&R Springs, Koni Yellows, M5 sways, Dinan forged 18" wheels, &c.
1995 E38 740i. Highly modded. Faster than you.
Sold 2-28-07: 1997 E36 M3/4, 8-30-05 RIP 1997 528i
Lindsay fan club member.