hi
iv used a w57 behind a custom adaptor plate with the original auto bellhousing, and a hydrualic clutch release bearing instead of a clutch fork setup. from there it goes to a custom one piece driveshaft to a Nissan GTS-25T diff (4.3:1 i think..) with custom output flanges (to shorten the overall width of the diff) and custom axles (with standard trailing arms and 323i cv's). the diff mounting was the biggest job, because bmws diffs are stuctural members and nissan diffs are not. the subframe had to be modified to carry the diff. if i was to do it again i would go for a bmw diff like a 740i or 750i diff, as aparently they are bulletproof (and easier to mount).
i have heard of people swapping in whole 5 series rear ends to E30's, but this would need to be verified on a bmw forum, or ask a wrecker. you would also get the benefit of bigger brakes, axles, cv's, and 5 stud hubs. then source some E30 M3 front hubs (5 stud) and new wheels, and you're sweet. i had to have my 5 stud hubs all custom made, to fit big disks and M5 replica wheels. expensive, but worth the effort. the big brake swap also had the bonus of no longer needing a brake booster, so i now run an in cabin bias-adjustable pedal box, and have had all the brake lines hidden from view. (none go through the engine bay or under the car. this is more for show though.
see attached photos of gearbox and bellhousing, and modified rear end.
i hope this helps.