[driving2] It wouldn't be very easy to get an additional 40hp out of the 325's new motor without paying a very expensive visit to either Mr. Dinan or Mr. Conforti. In addition to different engine management software, the 330 has a 3 stage intake instead of a 2 stage, as well as a completely different exhaust system. In addition, the manual transmission in the 325 is not rated for much more of a hp increase than it already has.
I don't rebuild motors, but I'm sure that BMW has a few other engine part differentiations that they don't make public. If there aren't, well, the fact that most tuners I know today can't get that much more out of the current 330 engine tells me that the new 325 probably can't go that much further either without risk.
Regardless of this, I still believe that BMW will be closing the price gap between the 2 models this time around (probably closer to $3 or $4k as opposed to $6k) in an effort to justify the price of the 330 and make it the value model. There is already about $1400 worth of previously optional equipment that is now standard on the 2006 330i.
R.R.