Im not 100% sure, but I know the bmw 2.5 6 cylinder diesel is virtually the same as fitted to p38 DSE. If you have the same gearbox as the diesel p38's then I dont see why you couldn't replace the v8 with the diesel simply enough. You may find you have to put a range rover dse flywheel and clutch onto the bmw engine but not sure, maybe a standard bmw clutch will fit?? Make sure you get the 325 or 525 TDS not just the TD as the tds bimmers have 143bhp and the td only 115, and from what I can see the the main difference is the td doesn't have an intercooler.
Hope this helps
