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I looked into this and pulled the trigger on a system from and e92 m3 DCT, with the gearing ratio of 3.15 bc it’s similar to ours at 3.08. The guy I bought it off of also included the m3 subframe which I also thought about swapping in. To do this job yourself it looks difficult and the labor to do it really isn’t worth it. My uncle was a mechanic at Peter Pan bmw in San Mateo for years, he now has his own shop and he’s been doing bmws and mercs for almost 30 years. To do everything right you’d need to get bushings for the new subframe a full m3 control arm and tow arm conversion on top of getting the driveshaft cut and custom welded. I only paid 1k for all the diff parts but I was told installing it with lab and new parts could be close to 5k which is almost worth half the money of these cars. Unless you plan to keep this car long term I personally don’t think it’s worth it. Still cheaper than a ford 8.8 lol but the cost isn’t worth the value you’d be adding to the car making it a Frankenstein m in a way. I’ve never driven our cars with an LSD so I can’t tell u the difference but it’d probably be better to sell save up and get an m2 comp which already has an LSD and a better motor imo.
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