Copied from e30zone Forum:
Removal
First off, you need to get your engine bay empty. Get a load of cardboard boxes, packing labels, plastic bags, zip ties and marker pens, and slowly dismantle everything in your cars engine bay. Start by disconnecting the battery and removing it from the car. Then drain the coolant system and dispose of the fluid responsibly. You can now start unbolting everything, but make sure you bag it and tag it as you go along, so you can refit anything later. Here's a handy checklist - cross them off as you disconnect them:
exhaust
exhaust heat shield (under car)
propshaft
gear shifter linkage
clutch slave
rear light switch cable
throttle cable
engine earth strap on the engine mount
coolant hoses to the internal heater matrix
Power steering hoses, if fitted
coil
ECU
You'll also want to whip out the radiator and headlights so that they don't get damaged, and store them somewhere safe.
Now you need to get your engine out. The quickest way is out the top with the engine and gearbox as one unit. To do this, remove the bonnet and store it. Crack and loosen the nuts holding the engine mounts, and remove the nuts holding the mounts to their rubber bushes. Loosen the gearbox subframe nuts too.
At this point some people find it useful to jack up the rear of the car to ease the angle of the dangle. Raise it onto ramps or blocks, just make sure it's secure. Now use a jack to support the back end of the gearbox as you remove the gearbox subframe. You can now introduce your engine crane, complete with balancer if you can; it makes the job a lot easier. Hook the crane up to the engine, and slowly lift the engine up and out of the way. Dispose of it as necessary.