Hi Chris,
I have almost exactly the same problem with my 2002 e39 530d Sport Touring - though mine is fine on the flat but falters going uphill on motorways, limiting speed to 50mph which is pretty alarming.
Thinking it was the fuel lift pump, I replaced that, but to no avail. Reading the post on here
530D power problem - United Bimmer Community - BMW Forum perhaps that is not surprising - if it only works for the first 30 seconds.
My next suspect is the inline diesel pre supply pump, item 9 here
RealOEM.COM * BMW E39 530d FUEL PIPE, DIESEL PUMP
darkhorse 737, when you say check the psi of the fuel pump, which fuel pump do you mean? (As far as I know there are at least two - the lift pump in the tank itself, another under the passenger seat, but there may be others?)
Have you managed to fix your car Chris, and if so what was the remedy?
All the best,
Fred