Yep, it'll work. You may have to bend the linkage bar a bit for clearance, but I've been running the M lever in mine for a good 10 years now. There's a how-to out there, I'll see if I can find it for you...
__________________ '96 318ti Base - few mods installed...
I am using the Z3 1.9 lever on one of our ti's and have another slated to go on the Club Sport project. It works perfect and no modification needed. I have sold several of these to members of this forum and everyone seems to be happy.
More important than the shift lever are the bushings throughout the linkage. If you existing set up is sloppy, replacing it with a short lever will just make it short an sloppy which is a great way to miss a shift.
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Z3m shift lever 
Linear Mode
