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Read further down some opinions on engine upgrades for the E30 and thought I'd comment - having just squeezed an M50 into our E30 track car. Let me start by saying that this is not a task for the novice. The M50 engine is a different shape to the M20 at the top - where the space problems exist. Now we also had to fit a supercharger in but let me tell you, its a squeeze.......We had to relocate the brake master cylinder - in fact all the hydraulics for the brakes and steering. We had to modify the sump but getting an extension welded onto the side - this is mainly for the supercharger oil line pick up but shows the lengths you need to go in a project such as this.
For any of you US people, I would stronglt suggest talking with Jason at Zionsville Autosport before you decide to go the transplant route. Transplants are never quite as easy as they first appear (ask me about my other transplant project - small block Chev into Toyota Troop Carrier...).
Kim V Henshaw