is there an easier way to go ob2 to obd1 without selling a kidney to buy a convertion kit. can't i just swap the ecu with a pain in the ass harnest re-wiring or swap. what sensor and parts are actually needed for a more simple convertion for an e36 m3? feel free to attack me on this...it'll only make me stronger!

Yes you can, you need:
red label 413 dme,
obd1 manual wiring harness,
M50 front crank sensor,
M50 inlet cam sensor,
the front timing cover off an M50 or the cooling system adaptor from turner, the wiring harness adapter for the coolant temp sensor in the head,
M50 manifold and misc vacuum hoses/adapters for proper crankcase vent.
This would obviously eliminate your oil seperator setup unless you buy the conv kit, there may a few small misc things but this is majority of the things that are needed.

sounds good! thanks!

what about knock sensors?