Right now i have a 97 328i and am looking to get a 2004 530i.  I would like to do some engine upgrades to it though.  Can anybody help or guide me as to what's the best performance I can get out of this engine and how to do so?  i would like this puppy to run like a M3 or better.  

Handling and braking upgrades are pretty easy for the 530, but more power is going to be a little harder. You could probably find a supercharger kit for it, but if you want big performance gains, you are better off putting your money towards a 545. It will be much cheaper in the long run to start with the faster car if you are looking for M3 performance.