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Hi. When building a leafer in the UK, this engine was one I considered... I ended up using a VW 2.4 TD which I intercooler as well. It sounded and went well, as long as you kept your boot into it and kept the turbo singing.... This meant driving it at 2000rpm and above as their was very little torque. If you are building a vehicle for 90% road work, I say go for it! If you are planning on towing or doing some decent off road work then maybe re think a little... If you are really set on the sound of a 6 pot, maybe think about the Nissan RD28... Don't forget too now that their are a few sensibly priced Td5's getting around now and they sound sweet with minimal muffling!!:)
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For a BMW transplant have a look here:
Slammin's RRC.... - Pirate4x4.Com : 4x4 and Off-Road Forum
There's also a later thread about a Volvo in a Disco. As someone already posted, it is a lot easier doing this sort of stuff using a ZF.
DL
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Talk about dredging up an old thread! Given it was started in 2004, there's a fair chance the OP may have moved on by now. :D