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Your Ride: 97 328i
I love it when Honda guys tell me "You know this thing has vtec," and I respond with "this thing has vanos." I always get a "huh?" back from them. Don't underestimate a car just because its a Honda. There are maaaany civics/integras/s2000 that will destroy our cars. Just because we have a BMW badge on the front doesn't make it the best.
*Image hosting service banned this link* Montreal 328i
I don't know very much about it, but I think generally it's a more efficient way to control when, how, and how much the valves open. The optimal level differs depending on whether you're running at high or low rpms. The VTEC system controls this (more so at higher rpms, I think) to allow for better acceleration at higher speeds.