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The way used pricing is for these cars, it's much easier to buy the later-style 986 than to update an earlier one. Granted, I know that doesn't mean having a GT3 front bumper, but it does mean updated headlights/taillights, wheels, rear bumper, side vents, and slight updates to the interior. You'll be much happier starting with a 03+ (guys, correct me if I'm wrong on the 03) that has all these things.
By the way, what I mean by "the way used pricing is" is that since the market is not quite as saturated as it is with the e36's, people have no idea how to price them, and you sometimes see a lower mileage 03 for the same price as a higher mileage 00 or something -- same options, same maint. history, same body condition, etc. It's much more dependent upon time of year, location, and maybe some other factors I can't even figure out! So spend a LOT of time looking before you buy.
By the way, beautiful e36 -- I had a 4-door version of your car until I caught the 986 bug. :-) Just a word of warning, the e36 aftermarket is dirt cheap compared to this car!!!
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