i paid £1350 for my e46 with 117k on, all it needed was a £9 temp sensor, i got it in the auctions btw. £2k does seem cheap but yes it is high miles, but as you no already there great engines which run and run. id say just check for battle damage, eg shut lines, dodgy paint etc. as dabsy said, make sure engine is cold when started, watch the gauge, it should sit at 12 oclock position when up to temp. also check things like engine oil cap for any 'mayo' if it looks to clean its proberbly been wiped clean.