will large rims damage the drivetrain on my 4 cyl. 1996 bmw 318i?

Yes that size of rims can cause damage to the drivetrain. Transmission damage would be your main concern plus brakes would wear out faster and gas mileage would be ruined. The largest I would go on a e36 is 18inch.

Your gear ratios would be far off what the engineers /designers intended, not to mention your speedometer would show you going much slower than you really are, just asking for a ticket if your speedo shows, say, 55 you will be doing, well I don't know exactly depends on what is on now and the profile of tire, you could be going as fast as 65

You also would be playing havoc with your steering components. Rolling mass is exponentially increased. Besides, E36 would look ridiculous with 22's. Save your money and buy a better Bimmer.

just use tirerack.com for fitment applications. Bearings would FAIL fast.