I also rebuilt my rear end and went to 3.07 while I was at it. Admittedly I thought it may have been a bad call but it is 100% the best thing I ever did. I agree with the above on the butt dyno, it seems faster to me. Actually I noticed no difference whatsoever on a WOT take off but with the 3.07 part throttle acceleration is without question faster. Hills aren't an issue and cursing at 70-75 I hear something odd for a 240 - wind noise. It freaked me out a little at first. I do, however have a slush-box so can't comment on feasibility on a manual gearbox. I actually expected my in-town mileage to drop but it went up about 6mpg and highway 2mpg.

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'83 240D