It's a BMW 325i Touring E30 which has been TOTALLY converted to a M3!!
The guy responsable for this magical Beemer is called Terry Sayther and he's a BMW specailist from Texas.
He's quite a cool guy!! I meet him at 'Bavaria Tour 2002' - a massive event to celebrate the BMW 2002 in the year 2002 (just short of 250 classic BMW's and 500 participants!!!). He had shipped his '71 BMW 2002 Baur Targa with a S14 engine from Texas to Germany so he could be part of the celebrations!!
In 2004 he also took part in the amazing Pan America race in a specially prepared BMW 502 V8!! This was actually the first time a BMW ever took part in this legendary race - probably the toughest race on earth...
But to get to the point - the BMW M3 Touring E30

http://www.terrysaytherauto.com/yet_ano ... ct_car.htm
And a few pics of the bodywork modifications (rather extensive...):
Stunning work isn't it??

If you've checked out the link, you'll appreciate that the mechanical part of the conversion is just as extensive as the bodywork...
BTW, the rest of his homepage is definately worth a look too...
Some really cool BMW's on there!!

http://www.terrysaytherauto.com/Home.htm