e39 LSD Differential Conversion

[67Riviera]

Still trying to wrap my head around what exactly I'm going to need to do this, any help would be greatly appreciated.

Here's what I've got - 2002 525i Touring, waiting on Josh to get my swap mounts, have an LQ9 in the garage waiting, which will be mated to a T56 or TR6060.

Dan over at Diffsonline recommended swapping a complete M5 subframe assembly, which might be the simplest but not necessarily the cheapest, and I'm on a budget. While I am on a budget, I also do not want to cut corners that may come back to haunt me later.

Here's my question - I have found a complete rear subframe assembly (incl. diff, axles, hubs, brakes, etc.) from a 2003 540i Touring M-Tech for $450. If what I've read is accurate, all I will then need is the M5 diff itself and M5 half shafts or pre-'96 e38 output flanges (or aftermarket LSD internals for the stock 540 diff). Is this correct, and is this potentially the most cost effective route?

Also unsure if this is the best section to post in.

[Schitzo]

You don't need a subframe from a 540i or M5. The M5 diff will bolt onto your 525iT subframe just fine.
You only need an M5 diff, M5 axle shafts and m5 driveshaft (which you will have to shorten to work with the LS trans).

[67Riviera]

Thanks Schitzo!