Bradley writes >>>Well, I know BMW says that there will not be a e46 M3 Sedan, BUT I saw one today.<<
Scott replies>>>>According to the BMW AG M Honcho and a couple of senior M
speaking at M Day, the final decision on bringing the 4 dour E46 M3 to the U.S. market has not been made. Anything is still possible and they noted the support amongst the M Day participants for the M3 sedan. I also got the impression that BMW NA wants the M3 sedan, too. What it may take is another letter writing campaign like the one that got us the U.S. E36 M3. So, if you want an E46 M3 sedan, dig out BMW NA's address and write 'em a letter.
The word that I got was that yes there are E46 sedans with uprated engines and suspensions. The M engineers wanted to get a head start on the M3 project and needed a chassis to test. Since the coupe has not been finalized, they took the sedan and started to play around with it. AG has decided not to make a E46 M3 sedan for fear it might take sales away from the E39 M5. Then again things can happen and they might change their minds 8-)