Mike, i think the rev limit on the S50 engines was quite a bit lower than the S54 which you're comparing to on your E46 M3. It was still about 500-800 higher than the M50 though.
McRamsey, I've been driving around in my sportster this weekend tuning my new 3.0 franken-engine made from random bits of M5x series engines and control by a megasquirt. Even with my un-dyno'd tuning efforts, I think I've hit the sensible limit for a road going sportster. The acceleration/torque is definitely an improvement on the old 2.5 and by the time you're passing 5000rpm you're well and truely pinned back in your seat and having to really concentrate on keeping it straight, especially if there are any bumps in the road. The tyres don't let loose but there's a definite lose of steering weight. I probably need to look at the suspension setup again as I've lost 20Kg on the front with the change to an ali block plus the extra power could well affect the handling.
God knows what it must be like trying to control the power on an S50 engined car, even one that only goes to 5500. This has of course only deepened my resolve to upgrade to a V12 asap as I don't believe in stopping at a sensible limit.
Btw, I've a set of M50 clocks up on ebay. I don't know if they could help and are a lot less than £200. The original wiring had the same set up with the vss coming in from the diff and on to the dme, though I never connected that up in the marlin
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