Well, it's been a while. It's finally time to start a project on the 128i that I've been talking about for a couple of years now.
It all started in a junkyard... which, seems to be a theme with this rolling pile of bolts.
A junkyard about 40 minutes north of me recently took in an automatic 128i. For those that aren't familiar, the E8x/E9x cars come with a variation of final drive ratios:
128i/325i/328i Manual RWD: 3.23
128i/325i/328i Automatic RWD: 3.73
325xi/328xi Manual X-Drive AWD: 3.38
325xi/328xi Automatic X-Drive AWD: 3.91
330i (2006 only) Manual: 3.15
330i (2006 only) Automatic: 3.64
All of these cars come with the "small" rear diff and are interchangable with each other (although AWD cars would obviously have to swap both front and rear to avoid drivetrain issues). Although I believe the 330i diffs have a slightly different input flange/pinion yoke, but I'm pretty confident you can swap over parts from your stock diff to make the 330i diff(s) work as well.
The turbo cars (135i/335i) come with larger diffs that I don't believe bolt in without swapping driveshafts (not sure if the axles are compatible). Same with the M3/1M. I'm not sure about the diesel 335d, but given the sizable amount of extra torque load, I would assume it also comes with a beefier housing.
After punching some numbers, I decided I wanted to run 3.73 gears, which should give me an extra ~15% torque multiplication, and let's be honest: as a long-time Honda and Miata guy, I'm just a sucker for short gearing. Here in Colorado, most of the BMWs on the road (and in junkyards) are AWD, so I had to keep my eyes open for a non-turbo RWD automatic car. Not an extremely rare car, but it does require a bit of looking. When this car popped up, I decided it was time to take a long-overdue trip to go rip out a diff:

It's been a while since I've been to a junkyard or even touched a wrench. I clearly didn't have my head on straight today. I grabbed a set of everything I thought I would need, but didn't go overboard. Note to self: always go overboard.
I also didn't bother watching a video or researching what tools I would need. I mean, it's a rear diff, how hard could it be? Oh how my arrogant idiocy rears its ugly head!
I want to be clear, if you're working on a nice garage floor (rather than laying in gravel and broken glass) with a lifetime worth of proper tools, this shouldn't be a terrible job. Yeah. You know what's coming next...
So, the rear of this fine junkyard machine was sitting on top of a couple of welded together steel wheels, as you would expect at such a facility. Why does this matter? The wheels were directly crushing the center-mounted exhaust hanger. Translation: since I couldn't get to the center exhaust hanger and didn't want to try and work in the area surrounding it (for fear of the car crushing down on me), I couldn't fully lower the exhaust. Which, wasn't the worst thing in the world, but moving the exhaust fully out of the way would have made this job a hell of a lot easier.
I had to get creative to get some of the eTorx axle bolts off (due to the axle being in the way of the bottom bolt and the axles not spinning freely), but all of them broke loose without too much of a fight.
I also managed to get the four eTorx bolts to the driveshaft off without much of a problem either. I thought everything was going relatively smoothly, minus the exhaust being in the way.
There are only three bolts actually mounting the diff to the subframe. The rear two are 18mm hex bolts that zipped off no problem. The front bolt? It's a 21mm hex bolt with a 21mm nut on the other side of it... I brought a 21mm socket... exactly one of them. I also brought a set of ratcheting wrenches... that only went up to 19mm. After brainstorming and trying everything I could think of, I came to the conclusion there was no way I was getting that nut off without another 21mm tool. My house was 40 minutes away. Parts stores were much closer, but after realizing there were more tools I should have grabbed to make this job (and another job I was planning, more on that later) easier, I decided to make the long trek back to the house to get extra 21mm tools.
Upon returning, I got the 21mm nut and bolt off almost instantly. The junkyard kindly allowed me to bring a transmission jack (they usually don't allow traditional jacks, but I assured them it was far too flimsy to lift a car). I went to lower the diff and discovered that the extremely rusty tail-end flange appeared to be rusted onto the driveshaft. Lots of profanity, pulling and wild kicking ensued, to no avail. I brought a mallet, but in retrospect, I wish I had come prepared with a legitimate BFH. I also brought a long flathead screwdriver to act as a pry tool, but was wishing I brought my chisel set. Yet again, when going to the junkyard, always go overboard.
I found I actually had to lift the diff back up (good thing they let me bring my tranny jack in!) and eventually, after fighting me for ~20 minutes, the diff was free:

I'll likely clean it up and do something about the rust on the tail end before I go any further.
As a bonus, when we looked inside the car, we saw everything had been torn apart and three perfectly good vents were just sitting on the floor, waiting to be snatched up! I had actually put new vents on my list of parts to replace, as my stock vents have a broken slat and are extremely weather faded in comparison to the rest of the dash. By comparison, these were in much better shape!
On the same lot, I also managed to come across a 328xi/X-drive. You might be wondering, why in the world would I be looking for such a car? Well, remember the last time I was on track and complained about the excessive body roll and understeer? I figured an easy way to help with both problems without spending a ton of cash on a set of stiffer coilovers is a thicker rear sway bar.
Just like the rear diffs, these cars come with several variations of rear sway bar:
Base 128i: does NOT come with a rear sway bar
128i w/Sport or M-Sport package: 12mm rear sway bar
E9x RWD: 13mm rear sway bar
E9x AWD: 15mm rear sway bar
For reference, the M cars (M3/1M) come with an absolutely massive (by comparison) 22.5mm rear sway bar.
I've heard of some variation of an E9x that comes with a 14mm rear bar (a sport package maybe?), but I didn't see the point in searching for such a unicorn.
Most people that track these cars recommend you try running the smallest rear sway bar you can, controlling rotation and body roll with spring rate. For a dedicated track car, that's probably good advice. On the street, I actually like the way my Bilstein B12 kit rides and the way it controls the car on back roads for the most part. I'm not keen on parting with this setup anytime soon.
Most folks will tell you that with the stock open diff, running a bigger rear sway bar on these cars will just increase the car's tendency to one-tire-fire coming out of corners. I believe it. But, along with the diff I just picked up, I'll be putting in an order for a Wavetrac LSD to swap into it. Translation: no more one-tire-fire means I can run a bigger rear bar. Which is probably why BMW gave the M-cars substantially upgraded rear sway bars: they come with LSDs stock.
I wasn't sure that I really wanted to jump from a 12mm sway bar to a 22.5mm rear sway bar, as it's a massive jump that might have required a full suspension re-tuning. So I decided to skip the M3 bar. I considered an aftermarket setup, but since this is essentially a street car, I like the idea of OEM bars (hollow=lighter and they come with rubber bushings that never need to be greased).
Doing a bit of not-terribly-precise math, I estimated that the 12mm rear sway bar on my 128i (I believe all the OEM bars are hollow) was likely good for about 50-82 lb/in of rear spring rate- about as much as a wet noodle. Jumping up to a 15mm rear bar should bump that up to around 120-200 lb-in in the rear; which should certainly be noticeable.
In order to get the rear sway bar out, you do have to drop the rear subframe. If you're trying not the damage the brake lines and parking brake lines, it seems like it could be a bit of a tedious job. On the other hands, if you're in a junkyard and don't really give a damn? 10 minutes. No joke or exaggeration. I literally had that bar out and in my hands in roughly 10 minutes- with ease.
Rear subframe dropped without an issue:

Bar came right out:

I was expecting the rear diff to be an easy job and the dropping of the rear subframe to be a pain in the neck. I received the exact opposite.
How much did this entire treasure trove cost me?
-3.73 rear differential: $97.95
-15mm rear sway bar: $30.75
-All three interior vents: $16.00

For reference, the used OEM vents go for about $130 on eBay ($70 for the center and $30 for each side vent), the rear diff goes for about $300 on eBay and OEM 15mm rear sway bars go for about $90 shipped. So a few hours at the junkyard saved me roughly ~$375 vs ordering used parts off of eBay. Not bad at all. A much better deal if you come with all the tools you need the first time!
I considered skipping the rear sway bar, but I plan on swapping over to solid aluminum rear subframe bushings, which requires dropping the rear subframe anyway... so, I figured, "while I'm in there!".
And now, after watching a plethora of YouTube videos, I just have to order a Wavetrac LSD and try not to mess anything up while swapping it into this diff in my garage. Fingers crossed!