| Although I do not own a 2002 or newer BMW, the preponderance of opinion is that if you want to hate BMW, buy an '02.
The 2001 model year was the last of the e38s, and although it had a run of several years, it still had many, many problems even at the end of the run. Most of the problems are easy DIY type fixes, although the fading pixel issue is the only problem addressed by BMWNA.
If the car is out of warranty, try to find an aftermarket warranty as you will need it, unless you have lots of folding green to spare.
jake | 
