DO NOT use the E36 M3 automatic - it's far too short, and only has a little bit of engagement. It's really not a good fit.
Use the manual Z4 driveshaft. We had quite a discussion about this:
https://www.bimmerforums.com/forum/s...8#post30672258
Nick had the right answer. You should read the whole thread if you're doing this swap. There are LOTs of ways this can go sideways -and I think I found most of them!
The correct driveshaft is the 3.0 with the 6 speed - it ends in
7514468. The driveshaft from the 2.5 mated to a 5 speed tranny, and that's the wrong one. It needs to be an E85 / E86 Z4 3.0 with a 6 speed manual.
Good luck - you'll love it once you get it working!
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