E36 suspension concern

[Matt6481@xxxxxxx]

Since I'm not satisfied with the handling of my 92 325is, and the fact that
the gaps between the tires and fenders are very possibly greater than that of
a Land Cruiser, I began the quest for lowering springs. Considering that I
drive on the worst roads imaginable, and I'm not quite willing to give up the
luxo ride, I first looked at purchasing M spec springs to use with my stock
shocks. These (I'm told) would be lower by about 3/4 of an inch, with a ride
slightly better than an M3, which I could happily live with. However, Bavarian
Autosport convinced me that a set of AC Schnitzer springs would be slightly
firmer than M springs (but still not ride as firm as an M3 with my higher
sidewalls). I was all set to order until I was told that my car will drop 1.25
inches. The fender gaps will look nice, but I'm worried about scraping the
nose. 
Will the height be OK, or should I leave the ugly gaps and just get a set of
swaybars? Which will improve handling most?
Thanks!!

Matt 
Matt6481@domain.elided
92 E36 325is  

------------------------------