After three test drives, discussions with the service advisors, and the good input I received from some of you at Xoutpost, I purchased the 2004 X3 2.5i today.

It has the premium package, cold weather, xenon, privacy glass, satellite prep and is Blue Water Metallic with gray leather interior. I've attached a couple of photos showing what great condition it is in despite having 135,000 miles on the clock. I'm looking forward to keeping it in this superb condition.
Thanks again for your replies and constructive input.
Bob
X5Happy (now X3 Happy!)