If it helps I may have a complete M50 conversion available at the end of the summer. It's in my car at the moment, runs well and is in daily use. The only reason I will be getting rid is I have a doner E36 with a S50 which I will be pulling out to go in the E30.
As above, you need a e34 sump and dipstick, modify the 328i manifolds (or buy some bloomin expensive custom ones) and a smaller brake servo, (mk1 golf or clio).
As for the running gear mine has the original m50 gearbox and a 328i prop, but there are other options.
Numerous other things to think about as swapping the temp guage sensor for a e30 one, modifying the wiring, cooling etc etc....
It is a very worthwhile conversion, totally changes the driveability of E30's, and the 2.8 does go very well with the m50 manifold

S M Autos, Unit 2, Lilyhurst Industrial Estate, Abbey Road, Sheriffhales, Shropshire TF11 8RL
Workshop 01952 677089
Mobile 07824 661286
Workshop & car storage space now available to rent, phone or pm for details.