Carl,
Yes the E36 is a very clean turbo setup. The owner did all the work himself. stripped and rebuilt the engine, installed the turbos (Garrett T25), made the stainless steel plumbing, had the car stripped, repainted and then put back together. Price in parts was around $14000, boost is variable (HKS control system) and goes from 0.5 bar to 1.5 bar. He is still running in the car (it was done the night before the meeting) and when he is running max boost (1.55 bar or so) he should have 500-550PS out of the engine. The engine is built reliably as well with steel crankshaft (forged), strong connecting rods, strong head gasket etc. Engine management is stock Motronic with Active Autowerke chip. The car will no doubt benefit from a dyno assisted chip adjustment.
The air filter should have a cold air intake, I was also thinking of that. But I doubt it would matter a lot since the intercooler is larger than the radiator on the car

On a day with 15 degrees celsius outside we measured 'less than 20 degrees celsius' air intake temp. We didn't know the exact value since the instrument cuts off at 20 degrees C.