I know this contradicts my earlier advice but start with sway bars and see how close that gets you to the "feel" you want from the car. I prefer H&R but the Hotchkis are a solid product. Once you get them installed, then you will need to experiment to figure out how to adjust them to give the car the amount of roll control and understeer/oversteer balance that you want.
What makes you think that the KW V2 are going to make any difference over the V1? The V2 simply add adjustable rebound damping which will be yet another setting you have to learn how to set. They still use the same soft progressive rate springs as the V1 (as best I can determine since most vendors only seem to publish the amount of lowering - which should be a clue that KW caters to those interested more in looks than performance). I wouldn't waste the time or money on the KW V2. If the V1 isn't stiff enough for you, the V2 isn't going to change that. Start with sway bars and then re-evaluate your needs from there.
I also agree with McSpeed's advice regarding basic suspension maintenance.
04 IR 330i ZHP | ESS TS2+ SC | MagnaFlow "headers" | KMS 3.64 LSD | AST 4100 550/650| APEX ARC-8 18x9 | H&R front sway bar | Vorshlag camber plates, RTAB limiters | TMS subframe & swaybar reinforcements | UUC SSK & DSSR | UUC TM & TME | BW motor mounts | Dinan strut & shock tower bars | vaio 4-bolt oil pump
Last edited by TxZHP04; 12-11-2010 at 12:18 PM.