You cannot do a S38 conversion unless you have a donor M5. There are way too many parts to swap. You would need the wiring harness, tranny, driveshaft, radiator, all ancillaries, intake, full exhaust, etc. etc.
Now if you have an M50tu already, all you need is the M3 engine longblock and a chip. Obviously there might be things you want to replace (wear parts) or you may choose to use the larger injectors of the OBDII engines, but that is nothing compared to all the specific parts you need for a S38.
As far as engines are concerned, the S52 is more reliable than the S50. It came with stronger valve springs and retainers. These are known weak points in the S50 valvetrain. It is also difficult to compare an OBDI 3.0L to the OBDII 3.2L because the 3.2L will be converted to OBDI. I say, go for the extra displacement. No replacement for displacement. The extra .2L does help when using it as a base for adding power. Oh btw, I am talking about the US versions.
Originally Posted by Sam-Son