When installing an upgraded oil return line on and early S54 engine, you will need to change the adapter fitting on the engine oil pan. Models built before 2/2002 have a nipple-style fitting. The later version uses a threaded connection instead. If you have an early S54 engine, and are upgrading your oil return line, this fitting is what you need.
This part is listed by BMW as BMW part number 11127833008 (11-12-7-833-008) and is described as Genuine BMW Adapter Fitting for Oil Separator Return Line (S54 Engine).
BMW Fitments:
3 Series
E46 (99-05) > M3
Z Series
E36/7 / E36/8 Z3 (96-02) > Z3 M - S54