MasterC17's Recommended Oil's for an E46 Non-M:
*All Oil's Here are Group IV or Group V Oil's.
Oil Change DIY
Non-Xi E46's Take: 6.5 Quarts
Xi E46's Take: 7.5 Quarts
Mobil 1 0W-40 ($7.99): A decent oil, good for a daily driver.
BMW 5W-30 ($6.25): Best bang for your buck. P/N: 07 51 0 017 866.
German (Euro) Castrol 0W-30 ($7.99): A decent oil, good for a daily driver.
Amsoil 5W-40 European ($9.20): A better oil, but will cost you more.
Amsoil 10W-40 Premium ($9.00): Contains high doses of Zinc & Phos - Good for FI Applications.
Red Line 5W-30 ($10.49): A good racing oil, do a 50/50 or 66/33 mix with the 5W-40.
Red Line 5W-40 ($10.95): A good racing oil, do a 50/50 or 66/33 mix with the 5W-30.
Total Quartz 9000 0W-40 (Not Sold in US?): A good oil if you can find it, not sure if you can though. Popular in Europe.
Liqui-Moly Synthoil Energy 0W-40 ($12.49): A good brand of oil that will work in our cars (but expensive).
And undisputedly the best filter for our cars is factory (Mann) P/N: 11427512300.
If you decide you want to run an oil not on this list either ask or buy one that meets the following. Our cars like to run oil that has a Viscocity @ 100°C of 11-14 (cSt). I probably wouldn't buy an oil that goes out of this range. Your Winter (W) weight should be 0, 5, or 10. Your upper number should be 30 or 40. If you jump out of these ranges you risk hurting the engine.
This post will be updated and revised as time progresses.