BMW rates this engine as having 170 crank hp. Today I was looking at the July 2002 EUROTUNER magazine and see that they were testing a E46 323 with the 2.5 liter engine. They installed a cold air intake, Dinan software for the ECU, and exhaust. They said that thing dynoed 171 RWHP !!!! That is a little over 200 hp at the crank with just bolt on mods. I know people will say that dynos differ, that engine has 4 valves per cylinder, etc. but still if that engine was really making only 170 crank hp then it would be really similar to the 2.5 liter M20, my car a 1991 cabrio totally stock made 143 RWHP, making almost 30 RWHP with just bolt ons is really nice or that engine is just underrated by BMW and is probably making more like 190 crank HP.
