Ok thanks guys, a UK based guy has contacted me to say his car which is the same as mine has D5 fronts and D3 rears.
From what I am lead to believe the biggest issue with the 135i was the lack of an LSD. To prevent wheel spin they fitted a really soft anti-roll bar on the rear and then made the springs too hard to get it round the corners. Apparently if you fitt an LSD, a firmer rear anti-roll bar and softer springs they are a completely different/better animal.
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