I've been watching around here for ideas and info once I decided to build a 7. I took the leap this October and purchased a partially built kit from a fellow forum member who decided to go another direction with cars. At this point, my build will consist of the following components. I will continue to update things as progress continues - this will probably be a very slow build though.
The chassis is a book build, originally designed for a Suzuki Swift motor, Samarui tranny, and solid rear axle design. I considered moving forward with this build but after researching the power potential of the engine provided, I decided it wouldn't work for me so its up for sale.
After finding an M42 relatively close by for $100, my decision to sell the swift engine was done - I was thrilled to find that the tranny was attached and it didn't cost anything more

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So my build components will be as follows:
Book build chassis
BMW M42 engine
Getrag tranny
BMW 4.10lsd differential
BMW rear axles
Custom uprights designed around E39 bearings since they bolt into place rather than being pressed - also allows for a bit more flexibility when designing the suspension
E30 steering components
I'll wire the car from new wiring and universal fuse boxes with the exception of the core engine harness components
I am currently parting a BMW E30 track car which is the source of my steering components and a few miscellaneous parts. As a result, my cost for the project currently breaks down as follows:
$1000 chassis - included nose cone and scuttle
$100 drivetrain
$50 M3 pistons
-$300? existing engine/tranny and rear end componets
Net would then be $850 I may make a run for the Grassroots Motorsports $2009 challenge series if I can continue with good $ luck.
My suspension setup will consistent of a bellcrank design using double adjustable coilovers - my preference at least. I suspect and hope that my most expensive components are in the suspension and safety devices.
The other area of some expense will be the engine rebuild. The M42 is known as a relatively lively little engine in the E30 and can be modified relatively quick to produce a bit more ponies. Rather than simply rebuilding using the existing components, I'll be boring the engine from 84mm to 86mm using M3 pistons from the E36. I'll also install a later version M44 crank to increase stroke slightly. The intake is a 2 piece design which allows for easy adaption of individual throttle bodies since you already have the manifold with injector bungs in place. These changes along with an SMT6 piggy back ecu unit will allow me to better tune the engine. In the end, I'm thinking the engine will be around 170-185hp if I'm lucky.
I'll be lightening up the entire drivetrain where possible to get as close to 350lbs as I can - this might be a stretch for the engine/tranny setup, but we'll see.
Haven't decided on wheels yet, but I'm a fan of 15" wheels so I'll likely target a 15x8 wheel size as the basis of my suspension designs. I'll post pics of all the parts later but figured I'd start the log now since I'm so syked about how things are coming along with parts acquisition.