You're not wrong about the noise. I've built a 7 with a 328 engine and it sounds incredible (not quite so angry now it's got an exhaust on it, but still really good).
I'd say any of the straight-6 E36 motors are a great choice, but for me it would be a tough call between the 328 and the M3. 328 is 20 kg lighter, but then the M3 has a significantly higher redline (and more power, if you really want more than the 328 is capable of). I don't really see the point of messing about with the 323 or 325 when the 328 is so cheap.
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