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I was concerned (initially) about the power as well. It definitely seems a bit underrated, but it's still not fast. That being said, in the six weeks I've had it, there have only been a couple of times where I've encountered situations in which I consciously noted that it could have more power. For my day to day commute, its totally adequate. The power curve is such that you're not forced to constantly row through the gears to get around.
Sport package is a must, manual was a must (for me). If you're going to keep the car sparsely optioned, the 320i is great. Only thing I'd do differently is spec xenons instead of the enhanced Bluetooth package (but I scooped up a car in transit, so it wasn't my call, and isn't a big deal). If you're going to kit a 320i up with nav and whatnot, you're probably better off going for the 328i - it seems like there's a lot of random crap left off the 320i that the 328i has; stuff which you'd probably want if you're spending $40k on a car.
TL;DR: 320i is totally adequate if its a daily.
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