When I did mine, I first went from AT to 4-speed. The 4-speed cost me $600 bucks 'cuz a pal's brother and I went halves on a wrecked '80 E12.
Then I got the word there were TWO '81 528i available, "running when parked" and and 5-speed trans in both. I paid $350 for one. It almost started, but I couldn't wait to pull the trans and junk the rest. So I did. The City took the remainder off my driveway fo' free, thanks!
I initially used the clutch from the 4-speed, pedals from a junkyard Bavaria (cheap too), master and slave from the E12. Later put in a new clutch disc and pressure plate. The AT dshaft will fit the 5-speed, as noted above, just lengthen it less then an inch. The clutch was piloted in place using an output shaft from a 2002 trans, the splines set it up quite nicely. Clutch/fluid reservoir from a 2002. Hardest thing to figure out was the neutral safety relay, but I took it out, got it right the first time.
I mentioned using the AT dshaft to Carl Nelson once, inquired if it was good for long. No problem, he said, that's how we usually do them. The splined section is maybe five inches long, 3/4" less contact is insignificant for a stock motor.
I did all my own work including a home-made platform for my trolley jack to lift it into place. Some minor headache getting the splines to line up; a bit of rotation on the output flange cured that almost immediately.
So it is possible to do the work yourself for under a grand. Some luck is useful; some patience; the usual assortment of common tools. Most are advised that it's an expensive major job, but really it's not so difficult on the mechanical side if you have the bits together and are moderately handy.
BTW, the Search function would have turned up the procedure and lots of discussion about this. We've been through it time and again. I have to say that E12s are not that commonly parted out nowadays.