Hello Guys,
Yesterday I have posted a help request for excessive gap solution. Today, I found my solution.
There are many publications on how to fix excessive gaps on E60 and especially after conversion from stock E60 to M-Tech and M5 from bumper.

Here are the steps that I performed and I would suggest you:
1) Cut the stock bumper foam pices to perfectly fit the 2 brackets that comes with the M-tech kit (credit goes to E.60 memeber)
Make sure to trim the both passenger and driver sides wheelliners per BMW bulletin.
2) Line up symmetrically the bumper. (You can use the BMW emblem or something else for reference point)
3) Close all gaps as much as possible and perform final alignment prior tightening the screws.
4) Don?t be disappointed if the excessive gap hood/ bumper still exist (see the photo of my car 18 months old car before M-tech conversion ? ther gap is there!!)
5) Brand new E60 cars do have the gap (If you look at the BMW sales brochure NO GAP seamless lines, but in reality check your BMW for reference)
6) Don't hesitate to use spacers placed between the upper bumper cover and the trim. I credit goes to E.60 member !!) I used 3mm Teflon spacers (see photo)
7) Problem solved!! Almost. I couldn't close the hood!!
8) MY FINAL SOLUTION !! Remove the fat rubber portion of the trim (see photo).
Don't worry the remaining trim still have the upper rubber portion that serve the same purpose. (see photos, new, before, my solution and after)
I hope this helps..
Regards,
Georgio

 

Here are the photos of my car before the solution was implemented.
G