M3 diff is in and ready to be aligned (have an appointment Monday). The diff install itself was direct bolt in (well obviously since BMW designed it to be interchangeable with the E46 rear).
I opted to machine the M3 diff cover rather than buy a new Z4M diff cover ($250 + shipping from Germany and 2 weeks wait). I just marked (actually sprayed bluing over the rear cross bars) where the bars would hit, mounted the diff cover in the mill, and removed fins as necessary. End result gives plenty of clearance while retaining more cooling capacity than the Z4M cover (not to mention I'm $250+ shipping ahead).
While I was swapping, I also converted from "BMW specific" steel braided brake lines to standard steel braided lines with -3AN fittings and lengthened by a few inches. This way I'm prepped to convert to Porsche calipers in the future.
I also scored a set of Eibach Pro-Kit springs a local guy was dumping ($50). He had purchased them new, never installed them, and traded his Z4 for a new 5 series. So being stuck with a set of "worthless" springs, he just wanted them gone.
The hardest part was getting the stock 5 speed drive shaft shortened. Not surprisingly, the drive shaft tube it's a metric pipe (so standard 1310 yoke ends won't fit it) and nobody around Phoenix has the flanges necessary to grab a BMW year diff yoke. I had to machine an adapter sleeve to convert the metric pipe ID to an American 1310 drive shaft yoke. Then I had to machine a hub for the drive shaft shop to be able to grab the rear flange.
In the end, it took a week of head scratching/trying different options, a half a day of machining parts, and 30 mins. for them to actually shorten/weld/balance the shaft.
So, some pictures:
Most places they just swipe your rims/tires, around here they take the whole rear axle.
All in, ready to go.
Modified M3 Diff Cover:
