Well I tore into it again today and I can confirm I have the shifter pictured above installed (with the stubby bottom end). I was able to wiggle my finger under there and there is VERY little space between the bottom of the shifter and the top of the transfer case. I think this is why I have such a stubby shifter. If I were to try and install the short shift lever I am pretty sure it would end up hitting the top of the T-case and not work at all. Not sure if this was a design change for the newer cars (mine is a 2011).
In any case I am boned. I will not be able to install this lever. If anyone is interested in buying a brand new 330i short shift lever with a new bushing and two circlips let me know! You should go and confirm you will be able to install it by checking to make sure when the bushing is loosened you can pull it up far enough to get it out of the cup.
Link to for sale thread: http://www.e90post.com/forums/showthread.php?p=14432707