Kinda boring but I spent a couple hours on the car today, pulled the rear subframe out and was planning on welding the reinforcement plates on and installing the M3 LSD but noticed that contrary to what I had been told the 318 axles wont fit with the M3 diff installed. Besides the axle flanges being different diameters the snap ring groove on the 318 axle flanges don't line up inside the M3 diff so I didn't feel comfortable using them. They also have 6 10mm bolts instead of 6 8mm bolts to mate the axle to the flange. I feel much more comfortable just running all M3 stuff. The 318 axles probably wouldn't have lasted 10 min. I looked on craigslist and found a guy at the beach that was selling a rear subframe out of a 95 M3. Awesome. So I called him up and he delivered it tonight. I also got the M3 front brakes and spindles from him as well. I got a lot of work to do tomorrow.
Old subframe out
New M3 brakes and other parts, you can see the difference in the diffs.