Peaches, first of all, welcome to the forum....
Second of all, there is only 318i with m40 officially sold locally. The M42 engine is only available for the 2 door 318is. the same holds true for the rest of the world except for USA where the post 89 (facelifted) 318i and 318is comes with M42. There is no M40 engines to be found in the USA... So if u visit the US based forums, they would have not much knowledge on the M40 engines.
Don't think there are many original E30 318is in Malaysia, most M42'ed E30 here are mainly converts, using the E36 318is M42 engines.
the M42 is miles ahead of the M40 in terms of technology, power delivery and driveability. the M40 is a lazy cruiser but the M42 has a lot more grunt and revvability. it has more power and torque across the RPM range. However, the M42 is in itself a free revving engine. u don't feel much speed below 4000 rpm but keeping it above 4000rpm makes it a lot more joy to drive.
There are a few converts in the forum with the M42 engines. And there a few stock M40. Come for our regular TT and see what an E30 drives and feels like....
At the moment, our regular Friday TT is in Showru Kelana Jaya, just beside the traffic light opposite the MAS training center...
btw, check out his site for more info on the M42
http://www.esatclear.ie/~bpurcell/index.html