Hi there!
Sorry I didn't see your post and questions, I have been super busy.
Well as far as your quest for 300hp with a m42 engine, I think you are dreaming. I am not saying it is not possible, but seems a stretch.
You didn't mention what your budget is and your internal engine plan is. 300hp will require some extensive mods, rods, pistons, and cams for starters. Cosmetic head gasket, and some headwork too. Do you plan on changing the s/c pulley on the s/c? My eaton g62 from a c230 only makes 6psi to 7psi max with the Mercedes stock electro mag pulley. It dosent even start making boost until about 3000rpm. My setup is a bone stock e36m42 with the exception of 36# injectors, coil on plug conversion, m20 flywheel, stage 2 clutch, custom intake, and obviously an eaton g62 supercharger. I use a bosch bypass valve from an audi for boost return. It works off vacuum and is basically "open" returning boost into the intake until manifold pressure becomes positive, not vac. I use a e30 m42 ecm, with a custom chip from Jake at Classic Daily. It is a detuned turbo chip that he made from his tried and true turbo tune, just scaled back a bit as he runs much more boost, 10 to 12psi. I think my car is probably only making 200hp, which is pretty good for a junkyard m42 with unknown miles. It runs great and pulls very hard. It is in a 1979 e21 320i which is a light car though.
Well, back to you, also in my opinion you don't need an intercooler but that's just me. The eaton g62 is very efficient and does not create much heat. Space also becomes an issue when it comes to routing all the charge pipes and such. As for the flywheel, any e30 m20 flywheel will work but you will need to make a spacer to go in between the crank and flywheel. I used an old auto trans flexplate from the donor car I got my engine from as it was an automatic trans car. I used the e21 throwout bearing as well as the slave cylinder. If there is anything I can help you with let me know..... Skid
Here are some photos of the belt routing, best I could get. I used Subaru timing belt bearings. They are stout and worked perfectly. My setup uses the stock e36 tensioner. Also you can see the bosch bypass valve in on of the photos...