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Unfortunatly the OP purchsed a car that has most likely not been very well maintained or has seen to many short run cycles (hence the vanos issue). BTW both engines will require vanos sensors and seals at some point. I am not too sure what may have caused the blow out valve to malfunction so early. I am willing to bet it is equipped with the automatic.
Suspension wise the cars are pratically identical. N52 equipped cars are faster through the corner due to the penality of an additional 160 pounds over the front axle the N54/55 pays.
Of course, once we pull out on to the straight the N54/55 begins to walk away. On a hot day after about 15 mins the N52 moves closer due to heat sink unless the N54 is modded (larger intercooler, meth?, oil cooler ect ect ect). I would dare say a 128 equipped with a proper limited slip would give a 135i a run for his money. The percieved lack of HP causes me to focus on keeping the car above 4K RPM where she is happy. With no reserve of power if I screw something up I pay a larger penalty. The 128i around a track is a momentum car. But, who really drives like that on the street?
It's all conjecture really. If your old school like some of us, the N52 is the last of the great naturally aspirated in line six cylinder engines. In European form (130i) it can produce close to 300hp (assuming ROZ 98 fuel) and pound for pound produces more HP than any other naturally aspirated engine BMW has developed. The reliablity across the fleet has been above average on top of everything else.
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