I grounded a plug against the block and got spark while turning it over.

 

Will it fire and run on starting fluid? if yes, the problem is fuel delivery. If no, the problem is spark timing.
Spark timing is controlled by the refrence sensor. If it's bad, you will get a spark, but it doesn't happen at the right time, so it won't run.

 

I'm sorry the DME did not do the trick, but they're expensive to replace, so having a good DME is not a bad thing.

John's suggestion to try starting fluid in the cylinders sounds like the next logical step. If you're still looking for a noid light, I think the O'Reilly in Rockford has some, according to their site. It's a bit of a drive, so I'd try the starter fluid first.

BTW- My wife really liked your 328. The ///M bits and wheels look great!

 

At this point I'm willing to drive anywhere! Do you just spray the starter fluid through the TB? I can give that a shot tonight.

Tell your wife thanx. I like the M stuff, but it creates a gap over the front wheels that looks stupid. Overall tho', I think it looks pretty good - especially since BMW never did a Siena Red M3.

 

You can just open up the air cleaner and give it a good shot (2-3 sec) down the intake into the turbo. I'd suggest spraying it while someone turns the key. You'll know pretty quickly if it'll work or not (within 4-5 sec); in other words, don't go spraying an entire can down there hoping it'll suddenly get better.