I had a E36 M3 in the past and loved it. When I bought my 330cic in
2003 I wanted an M3 but was reluctant to purchase because of all the engine problems.So I am think I could buy now and enjoy the car for 4 years or so and then upgrade to the new model once the bugs are worked out. The new v-8 will be nice but BMW does not have a good track record releasing new engines.
If I wait until the new model (2007) I would mostly hold off until at leest the 2009 model just to make sure everything has been worked out.