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<E-36> 17" wheels tire pressure (newbie question)

Hi,

	The factory spec for E-36 M3's tire pressure (235-40-17 all around) is 33/
36.  I've heard that people tuned it to 37/ 35.  What's the difference? 
Why does anyone wants to switch the higher pressure from the rear to the
front?  Does this help to reduce understeer?

	Also, does the same pressures applied to a plain 325is w/ M-Tech
suspension and same spec wheels and tires?

	Thanks for any inputs.

Zac
'94 325is JC equipped.