I managed to pick up a new fuel sender for $120 less than I expected. www.svauto.com . It was for the E21 320i up to 1977, but it fits the 323i just fine. That's one for the '80 323i. I also managed to swap out the oil in the LSD in the '82 and it seems to have helped a bit. Some of the noise died down and now it sounds as if the rear wheel bearings may be part of the problem.
I travelled to Elmira the other day and took the '82 to see if I could figure out the noise. Well, despite the LSD noise, I managed about 30-1/2 miles to the gallon!! That's with upshifting, not gunning it and having a pretty straight route to the destination. Not too bad for a 28 year-old car!
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