Driver reviews of the BMW 318i or 323i (1996,97,98). We are thinking
of buying a BMW and want to know what other drivers have thought of
these models and if there is anything specific we should be looking
out for in these models as we consider a purchase.

Have you tried asking and/or looking in the BMW newsgroups?

I recommend using http://Edmunds.com/  I'll walk you through...Click
on "Used Cars" tab at top.  Then under "Research Used Cars" click on
"Prices, Ratings & Reviews".  Click on "BMW", next select the Year. 
Then select BMW 3 Series and next select the Model.  This will bring
you to the page for that specific vehicle and you will find the
reviews that look like this:  Consumer Rating 9.2   23 Reviews  J.D.
Power Ratings | View all Ratings | Editors' Review
 
Good Luck!

http://www.ciao.co.uk/BMW_318i_saloon__78412

18 reviews

Http://www.roadfly.org/bmw

Has several boards, with existing drivers of the many different models out there.

The model you are looking for is the E36 which was in production from 1991-1998.

Here is a direct link to that board:

http://bimmer.roadfly.org/bmw/forums/e36/

Look through the archives and most, if not all of your questions will be answered.

I found this site invaluable while searching for my BMW (E32) even
though I'm an Aussie, and it's an US site.

Enjoy the Sheer Driving Pleasure! ;)