Welcome to Bimmerwerkz.
A headlight assembly from an E36 will NOT fit an E46. The E36 was made up to the 99 model year, so you will see some 99 E36's. However the E46 front end and headlight assembly is different and will not fit.
If your looking for upgraded headlights for an E46 please visit BAVTOYS.COM - 1•866•988•9995
Habbie is a good guy, and he will help you out.