Hi
I've just converted my 3.0 2003 to hydraulic steering, simple to do if you know your way round a tool box and nuts and bolts.
I used a purple tag E46 rack with original E46 track rod ends left on, a 2002 LF20 pump with associated pipework, the reservoir fitted straight onto the oil filter holder and an X3 oil cooler. All fitted straight onto the car with no issues, the only issue I had was the lower steering column was too big on the spline's going onto the rack, I overcome this by getting rid of the tab that fitted into the U/J so the splines could close onto the rack, you will also need a longer fan belt as the one on the Z isn't long enough due to a smaller idler pully where the pump now sits, I used a 2002 E46 3.0 ci belt. I have taken the electric motor off the steering column, (I did leave it in but the steering seemed to be holding on which makes sense considering the electric motor wasn't working), all in all very worthwhile, more feel in the steering, the purple tag rack gives positive feedback and lock to lock is 2.5 turns. had the car tracked and all is ok
Why did I convert, simple really, I wasn't going to pay over 2k for a new column or get a second hand one without the locking pin.
BMW needs to ask itself a question, they know about the steering faults on the Z4 and to be honest it's a dangerous issue, when the steering EPS fails steering becomes so heavy it would be impossible to correct if you needed to take evasive action in the event of an accident. Shame on you BMW, it seems cost out ways everything else.
PS when I went into my local dealer and asked if the conversion can be done they said no. Take no notice of them it can be done, you will have an EPS failure light on the dash, I've put a sticker over mine.