G'day onrelas,
Another aussie here
. Where are you located in Australia?
The car you mention sounds excellent, and its a tii to boot! Enquire to how the rust was repaird though - was it replaced with metal or just bondo'd over the top?
02's can easily be used as a daily driver. Many people here in Melbourne do it, including myself for a period. My resoration project will be my new daily driver.
As far as minor modifications to make it better as a daily driver, there aren't really a lot. A tii is a beautiful car even in stock form. The best upgrade you could do would be to upgrade to the 5 speed OD gearbox found in e21's which i believe gives more drivability by lowering the rpm at freeway speeds. Another thing, If the radiator hasnt been recored, id highly recommend getting a 3 core one. Mine now sits bang on the middle and doesnt budge, even in 30+ degree heat.
I highly suggest you check out
www.bmw2002faq.com and ask any further questions there. There is a much larger base of 02 knowledge there. Also, there are a few 02 owners on eurocca.net as well.
If your in Melbourne, feel free to contact me and i can put you on the Victorian 02 Register list to keep you in the loop.
Good luck,
Tom