As a side note, does this M5 clutch have the little valve like my e90 where it slows engagement on an aggressive release to save wear/tear on drivetrain?
This one I can answer -- No, the E39 M5 did not have the Clutch Delay Valve (CDV)
Here's a thread on that code: http://www.forums.bimmerfest.com/showthread.php?p=3766679&highlight=