There's a few different M42 versions floating around out there. I'm pretty sure the e30 harness plugs right in to all of them...but I haven't done it myself. Here's some things I've heard:
All e36 M42's have a different oil pan. You'll need the e30 two-piece one, it's a direct swap. Later motors ('93-on?) also have the DISA intake manifold & a different fuel rail. Easiest answer is the e30 manifold. Again, direct swap.
Later e36's have a serpentine drive system. You can swap the crank pulleys to retain the v-belts to keep your P/S and A/C setup. Might be easier to swap the P/S pump if you've deleted your A/C, but I'm not sure on that.
Using the e30 harness gets you around the late M42's EWS as well. Might be some different temp sensors, coil packs are different, etc. Post your experiences - I'm heading down this road myself and it'd help us out immensely!