Hi,
Yep the wheel from the post 2001 E46/E39/X5's will fit, infact any of the later M style round airbag wheels will. It is very simple swap, I have just done it. There is one previso though your car needs to have been built post 03/99 as this is when BMW switched from single to dual stage airbags.
If you do a search on the forum, there are many threads on this subject and some detailed instructions over on
www.BMWtips.com (for an X5) but process is the same. Member Tin posted some useful tips a while back.
And as stated the screen in the E46 is not compatible as it has a differently shaped fascia to the E39 and so won't fit, or even if it went in the hole may look very odd.
I would assume you have a 99\00 which as you have the 4:3 screen and probably the MKII nav. If you have a TV module you will need to swap it out for a 16:9 version or if you are happy to do without it, then the nav may display correctly on a 16:9 screen (depends on firmware).
If you want any more info PM me.
All the best
-Steve