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I have done this on an E39 as well as part of a factory navigation retrofit. It's been a number of years, so the details are a bit fuzzy, but I ended up using DIS to code the retrofit & cluster to the car (cluster was new, but virginized will be the same).
There is a very minor change to the wiring, IIRC - something about bringing the I-bus or an additional channel to the cluster. I actually corresponded with BMWNA about this at the time (15+ years ago), and they were impressed that I was taking on such a project!
Anyway, I still have a copy of the retrofit diagrams that cover all the wiring, etc. PM me if you want a copy, and I can dig it up and email it to you. The E39/E53 will be electrically identical despite some of the part numbers being different. I won't be able to help with the additional functions of the iS cluster, though. Would be cool to see that working on a 5 spd (like I have, too).
Oh, one last thing I will say about the high vs. low cluster, though, is that a big advantage of the low cluster is you can use aftermarket radios and not loose the (limited) obc function like you do with the high cluster when you take away the MID/NAV.
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2012 xDrive35d
2001 BMW X5 3.0i 5MT
and two 1987 Corvettes - Callaway Twin Turbo and Guldstrand Grand Sport 80
Block Tester
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