I had this swap done by Bavarian Workshop. Beyond fitment its not well documented about what actually needs to be modified with regard to an e46 rack in an airbag equipped car.
Car: 1991 318iC
Rack: E46 M3 Rack (Green Tag)

If you could confirm/correct some info that I'm not 100% clear on that would be great.
1. Spacers on top of the rack.
2. E36 tie rod ends with E46 inners to maintain venting.
3. Firewall needs to be modified to prevent binding (same for E36 racks).
4. U-joint may need to be filed to prevent binding.
5. Steering shaft can be adjusted inside the car to adjust length.
Hope this helps clear some confusion,
Bryon
P.S. DO IT!!
Sent from my MI 4LTE using Tapatalk
Car: 1991 318iC
Rack: E46 M3 Rack (Green Tag)

If you could confirm/correct some info that I'm not 100% clear on that would be great.
1. Spacers on top of the rack.
2. E36 tie rod ends with E46 inners to maintain venting.
3. Firewall needs to be modified to prevent binding (same for E36 racks).
4. U-joint may need to be filed to prevent binding.
5. Steering shaft can be adjusted inside the car to adjust length.
Hope this helps clear some confusion,
Bryon
P.S. DO IT!!
Sent from my MI 4LTE using Tapatalk