Yes....can be done but few things u need to solve it out....
For the disc....u need a pair of E46 330 rotor for the project...
Then come to the most important part...u need to remove ur knuckle and send it together wit d caliper n rotor disc to a really good mechine shop to custome a bracket to fit d caliper....
Once d bracket done...u need to find a rim which can clear d caliper...the e38 caliper is big...the bbs LM n CH wil be able to clear it without spacer...if u can't find any rim to clear it...u need to custome a spacer to clear it...normal 17 inch rim like M Contour need around 15mm spacer to clear it...its depend wat rim u r using....