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By sleeve I meant the sleeve that goes around the bottom of the threaded damper. Not cutting through the damper itself. By trimming the sleeve, I figured you could thread the collar down the damper further.
But yeah, the obvious answer is shorter springs.
Also, don't discount the fact that you're a full 1" smaller on overall wheel diameter. It will look a good bit lower using "correct" wheels. This is particularly relevant given the HUGE (and ugly) wheel wells of these cars. Even 18" factory-sized wheels/tires look way too small.
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'02 S54 M3 (500/500 GC/Koni)
'08 N54 135 (JB4, DCI, BMW PS/Bilstein B6s, H&R M3 FSB, Strongflex FCABs)
'14 N55 X1 (JB4, BMS DP, BMS Intake, Alpina TCU reflash, H&R Sports, Bilstein B6s, E93 M3 RSB, Strongflex FCABs, baby seat)
'08 N54 535xi touring (Bilstein B6s, Downpipes, MHD tune, baby seat)
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