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Are you talking long block, short block, front cut? With all the things you'd need to swap you'd be better off with a whole M3 donor vehicle. In the long run it's probably going to be cheaper to save some money, sell the 325is and buy a proper M3.
I was going to write you a list but as I thought about it I keep thinking of more things through the car that would need to be swapped over. It's a lot of work and expensive.
I know it would be have been easy to just buy the M3 but I do not think for my project it would have been worth it. I picked up the car for $2000 Canadian great shape lowered with bilstein shocks. 18" BBS rims 17"BMW oem rims ans a set of steelys, oh and 4 sets of tires. My 2.5 is chipped but I need more power. So this is where I am at.
I am stripping it down to the bare min and only putting in what I need to keep it street legal. I will be making my own custom carbon (hood,trunk,dash,my own body kit) and some of the panels, all made from structural fiber keep it light. I am just looking for info on what I need to swap the motor. I will be using a the power plant from a 1995 m3.
take a breather young man. ave u considered retaining the original lump and rather than obtaining a stock m3 lump witch will give u endless nightmares and could still be outrun by a spotty teenager in his nans diesel corsa think about tuning not upgrades to electronic chips or nitros . put it in engine mods to your proven motor reprolileded cams steel crank shaft take afew thou of the head and have it gas flowed re_ported lrger valves vernier timing gear flywheel lightened & balanced oversized pistons comp clutch put hewland race gearing in the box pump oil in using a dry sump kit lock up that diff and make the m3 guys feeel like theyre peddling u could makea monster outta wot u got