Hello,
I made my account just to share my experience related to the conversion of electrical to hydraulic steering. With no using new shaft from Z4M.
1/ The conversation was done on M46 engine, on the car which I converted from right-hand drive to left. Only a hydraulic pump is needed, not any additional pulley, belts, etc. The hydraulic pump is behind water on the same shaft.
2/ I did not buy a middle shaft from Z4 M, just exchanged the top part E46 to Z4 one in my leaving room. It is not hard, I used dremmel tool to "unlock" small bearings and pull them out.
3/ To turn off the steering dash light I used Scanner 1.4. Very easy just put out the tick for the steering light from the dash menu. Also the same tool to adjust the steering sensor.