I'm guessing the internals for the motor are modded too. Nice times, from the few pics I've seen I wouldn't have guessed it was that quick.
My original plan was to buy a different Bimmer, do a 5.0 swap and rag it out this year. I picked up this one for a great deal, so I'm gonna skit the swap for now. While the car isn't perfectly suited for Drag Racing, there are a few mods (specifically to the rear suspension) that I'm gonna do to help it out. LSD, diff brace, and subframe braces. It's gonna need a clutch and flywheel as I doubt whats in there will hold. As far as power adders, I'm gonna do headers, exhaust, S52 (M3's) regrinds, different Intake manifold, a tune and a healthy dose of nitrous.
The more I look at the car I keep thinking Triple Threat. Be able to run at the drag strip, Road Course/Auto-X, and Mile runs. For times I'd like to see low 12's-high 11's. While keeping it fully streetable.