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Honestly rockd, if I was in your shoes I would consider dropping in a Checy LS series motor and never look back. Check out this thread: http://www.m5board.com/vbulletin/e39-m5-e52-z8-discussion/163298-e39-ls1-swap-completed.html

I'm at 86,000 miles and so far my engine purrs and doesn't burn a drop of oil. If it ever decides to ventilate itself, I'm going LS3 + T56 trans for a fraction of what a new S62 would cost.

Best of luck and I hope things work out for you.
 
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