Do the swap! It's not that hard & you'll gain alot of confidence for doing future repairs. I have no regrets having done mine except for pouring more money into a 15-year-old car that now has 175k miles on it. I have the 7, my son has a 5, & my wife has an e36. The e36 is "o.k." but after driving the 5 & 7, the 3 is definitely too small & hard to get in & out (I'm 6'-2").
Be sure to get an aftermarket conventional flywheel for it -- ditch the dual mass. Or ask Joel at Euro Depot about e30 conventional flywheel options. They will mate to an m50 if you use the e30 pressure plate. I think there is a little trick in having to use an e21 throw-out fork and/or throw-out bearing.
Generic swap details:
http://www.nmia.com/~dgnrg/page_41.htm