Installing a deck in an e36 is very simple work. Do a search in this forum for "install" or something. ElPresidente and myself have given step by step directions numerous times. It should be easy enough to find the thread and do the install.
Yeah, pretty much. The harness that came with your new deck connnects to the harness you bought for the car. Those are connected with barrel connectors and each end is plugged into the car and new deck.
The colors on the wiring harness need to be mated to the matching color wire on the apdater harness. I prefer to connect them using uninsulated butt connectors and using a paint-on electrical tape. Anyway you connect them is fine. If you cross a wire you won;t short the system, the most you will do is make the wrong speaker play, two speakers not play, or blow a speaker (very unlikely). Unless you are colorblind, you won;t have any issue.
__________________ <span style='color:gray'><span style='font-family:Courier'>1995 e36 3 Series RIP
1999 e46 3 Series BURN IN HELL
2000 MR-S Roadster= Current</span></span>
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