Ive done probably the closest thing to an S54 in a cs , I put one in my e12 racer. It was not easy and it was ton more work than I expected.
the e12 and e9 will have many of the same things to over come
#1 the exhaust from the s54 runs right into the steering linkage
#2 the intake /airbox will hit the brake master and booster
on the e9 it will be worse because the base where the booster bolts to, sits further out in the engine bay
#3 elctronics ,
A) ews , either you will spend at least 1500 to reprogram it out of stock ecu or spend thousands more on stand alone
B) electric throttles , I kept them , and have DBW in my car, still working those bugs out
4) oil pan, the s54 has a dual sump with dual pickups, you most likely need to convert it to a single front sump with single pickup no mater what subframe you end up with
5) this is all before motor mounts, trans, trans mount , drive shaft, chassis reinforcements , etc
6) mine was put into a full racecar so there will be a lot more work to "civilize "it for street use, like ac, idle control, etc
A customer asked me how much I would charge to do this to a CS , in all seriousness , I said 40 k at least .
here is a link to the build thread I did
http://forums.bimmerforums.com/forum/showthread.php?t=1546476
Im starting a new project, where Im building a CSL Racer, My original idea was to use the s54 , I have changed my mind and going with an s38b36
The S54 is a really cool motor, They will turn some serious RPM, The power this thing makes with only 3.2 L is crazy. You can programn where the cams come on and really dial in your power curve to hit where you want. was it worth it , yeah it was, but Im not doing that much work again , no matter how cool it would be to have an S54 powered e9 ( unless some want to pay me to do it!)
lastly here is a video from a couple weeks of ago enjoying the fruits of all that work
http://youtu.be/LM5Tq5ZiWNY?hd=1