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If you want to seriously reduce understeer the first thing to do in E36 and E46 BMWs is eliminate the stagger and go with same size wheel/tire setup front and rear. An added bonus that increases tire life is you are then able to properly rotate the tires. On my E36 M3 i currently run 18x8.5 BBS RC wheels with 235x40 tires on both ends. I'll be buying a set of 255x35-18 tires before long to replace those. My car is very neutral handling with this setup, of course, I have extensive suspension mods as well.
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