Stock set up is meant to be driven by non-racing drivers on all sort of bumpy/broken roads all seasons. Sounds like you need some sticky tires + suspension upgrade

 

I forgot to mention, I did change the wheel/tire combo to UHP all seasons and upsize them to 215/45-17. Definitely agree with changing the tires for something better suited than run-flats.

 

One thing I don't understand is people saying the stock shocks are build for comfort -- they are not remotely comfortable! They're harsh and stiff, though they exhibit a decent amount of body roll. I guess they just suck, unfortunately.

I switched to Koni FSD's a month after I got my S and the handling AND ride improved by a noticeable amount. But now I need to switch those out and probably go with Bilstein HD's and new springs to help reduce the abysmal front wheel hop when going over bumps -- unfortunately the FSD's don't improve that.

But on topic (and aside from the horrific bump steer) -- I think the car handles fantastically for a FWD car, especially with suspension upgrades.

 

That's the springs causing that. Get some decent springs (NM's would be great with FSDs) and you'll be cookin' with Crisco.

 

The problem is that you're not supposed to use any kind of lowering springs with the FSD's.

 

I have the JCW suspension kit on my R56 and I am satisfied with it. It is a good compromise for a daily driver that is also driven on a race track.

Some time ago, I had a racer drive my car at Sebring. Watch and see what an R56 equipped with the JCW suspension kit can do in the hands of an excellent driver:

http://www.youtube.com/watch?v=mVumEJiBNRQ

The JCW suspension does a pretty decent job at the track if you know what you are doing and gives respectable lap times. I am sure a top of the line coilover setup would help shave off a few more seconds of lap time, if you know how to drive the car at its limits.

 

My only complaint with my '10 MCS is the overboosted steering. The runflats are alright, alright in the sense it had saved me from having to deal with the hassle of a fully flat tire once. I can honestly say my '03 MCS was overall raw compare to my '10 MCS. I believe it was then built purposely more for enthusiast. But MINI/BMW looked to widen their audience and tamed the car's track worthy DNA's (stock). When i had my '03, and MINI sponsored a free screening of Italian Job for MINI owners only, i can tell that a really high percentages of the owners are enthusiast at different level. And from looking around the lot at the time, only a handful was automatic out of maybe 200 cars.

My point, what i just said applies to any car.

FYI, best FWD i've owned is an '89 CIVIC SI hatch ('03 MCS close 2nd). Best RWD, S2000. Best overall, '04 EVO, best steering, great handling, stable at high speed, all in stock form. The power, need not discuss . Cons: Boy racer look. Had an '05 330i with sports package, it's the most unsatisfying drive i've ever had. Granted it's not any of the M's, but the 3 series in my opinion are overrated. Wasn't reliable as well, and rattled like hell.