I have an E46 323i with an M52 engine and this conversion works great. In general, there's very little chatter - barely noticeable when sitting next to the car at idle with a sound-reflecting surface. It's not noticeable at all when driving. The throw out bearing was actually different between the e36 and the e46 (slightly shorter) so I played it safe and bought a separate throw out bearing for the e46. Very happy with the feel and function of the clutch. Of course, mine was so worn it slipped, so a good, stiff, dead gerbil would probably feel better than the one I ran with.
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