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I would recommend German Motorworks in the nations. They seem to know their stuff - the owner was a BMW tech for about 10 years. Had to have my steering angle sensor replaced, which on these cars is a whole deal because that part only comes in the assembly for the entire steering column and all the stalks. This requires some of the car's computer systems to be recoded to the new components. They got it right on the first try, had me in and out overnight, and at a pretty fair price for all they had to do.
Not sure about emissions. Do catless pipes make the N54 throw a code? Because in Nashville they no longer check actual emissions, they just pop in an OBD2 reader to check if the ECU has thrown any emissions-related codes, and verify that it is in the "ready to test" condition (i.e. has not been reset within the last ~100 miles or so). YMMV on that. I bet the boys at German Motorworks can set your buddy straight on that though, when I was there it was immediately clear they do performance work as well as regular stuff.
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