Looks like the 240 4th gear syncro is possibly bad. I have a rebuilt e36 gertag 5 speed from a 325i. Will it bolt up? what driveshaft ? It's possible the rear small case diff is bad also and I may need to replace it.
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maybe have a dig through the m42 club site and the e30wiki. i think nearly any transmission bolts to an m42, some might rotate over though and need work on the linkage. m5x, and s5x versions are supposed to work on an m42, fifth is a gear and not an overdrive on them, which changes the final ratio., so you may need to change the diff as well. no idea what needs to be done about the driveshaft.
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