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I pondered it a coupla years ago when faced with deciding what to do about my trans. Crawled around the X5, took a few measurements, considered various AWD-type donor options that would marry an LS motor with potential driveline options (Trailblazer SS came to mind if I recall)
Even though I have the fab skills in general, and I already own equipment to machine my own parts and adapters, brackets, etc., I did not consider this for very long. The problem is all the systems, including your IP, all need to have a mutually agreed upon discussion at some level. Physical fitment would be a considerable challenge, but then you are faced with a "dumb" shell on your new conversion.
So the challenges of the physical processes and trial and fit and cut and fit and try and fit and cuss and try to fit some more will, if successful, result in an additional, and not insignificant challenge if you want to have a dash panel that is't all custom and "made to fit", nevermind all the other things that have to interact with the general module, etc.
In short, what little I considered in this arena indicated to me this would be a virtually entirely custom car when you are done, and absolutely a money pit with no market down the road unless you made it really well, like pro-quality (and probably not even then), which takes you back to that cost ($$$$ AND time) benefit consideration which is different for everyone. I swapped my first motor at 15, and have been into and worked on virtually every area of both older and modern cars, and I'd have just called the junkyard before I went down that road with an E53.
But that's just me. Anyone who undertakes this get's a big-ass "hat's off to ya" from me.........
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