Looking @ a 97 M3 sedan. What should I look for...

as problems areas to the car?

you might try the search feature first...

http://forums.roadfly.com/forums/bmw/bmw-3-series-e36/5537858-1.html

My 97 M3 Sedan Roadfly ad

Also check out the E36 M3 faq at
e36 M3 Faq

Look at the bottom right under Purchasing

John