The only major wear I have seen on these engines is the thrust surface of the crankshaft. The problem stems from BMW only using a 180* thrust surface bearing, a half shell. This cannot support the loads generated by these higher revving engines.
We pulled the crank from a running E36 M42 and the crankshaft was junk/scrap. The other M42 I built the thrust surface was just within tolerance and had taken some minor damage.
The front cover and oil relief valve are very important. The original relief valve is made of steel,...in a aluminum housing. When this gets all scored up it seizes and you lose oil pressure and kaboom, by by M42.
Here is a picture of the differences in the relief valves:

And when it seizes and fails. Their is actually
5 holes in this block! You should have seen the fireball that came out from under the car. It was at night and it looked like the little 318is had just had a direct hit from a RPG! (as a note this was a well maintained engine, but it did have 250,000 miles on it)


Its going to cost you some money. If you don't do it right, you will be doing it again.
You might be interested in this thread I just made today. Just for reference the engine in the following thread only had 160,000 miles.
http://m42club.com/forums/showthread.php?p=52249#post52249