z3 1.9 engine swap need some prof. opinions

My used 1996 1.9 z3 engine arrived and my blow 1998 1.9 z3 engine is just about out.

When the mechanic popped the hood of my '98 z3 we found that it has the air pump and follows California emission standards (TLEV). By then I had already purchased a '96 engine without air pump. Besides the air pump there appear to be some other engine modifications made to the fuel rail and such that can be found if you search parts manuals really close. Either the parts are differentiated by the TLEV comment or engines made between 9/96 - 1/97, start - 9/96, and 1/97 - present have differences.

'98 engine http://jason.shuff.info/98_engine.jpg
Replacement '96 engine http://jason.shuff.info/96_engine.jpg

Now before I purchased the engine both the yard and myself called BMW gave them the VIN for both cars and confirmed that the engine would work.

What I'm trying to find out is what I need the mechanic to do to make this work. Do we take out my original engine including airpump, intake manifold, exhaust manifold, fuel rails,..... and then replace all that with what came with the replacement engine. OR do I leave in the original exhaust manifold, intake manifold, fuel rail and such and have him just install the basic engine. What i mean by 'basic engine' is http://www.realoem.com/bmw/showparts...56&hg=11&fg=05

I'd love to remove all the California emissions type stuff since this car is registered in NJ, but I'm afraid that the ECU will get confused and cause errors.