Progress update: I installed the coil from an 82 E21 320i, bypassed the 02 ballast resister (connecting both leads to a jumper wire) and the final kicker was the coil wire from the transistor ignition module lead must be connected to the negative side on the coil. I now have spark and it started right up! Finally! Thanks everyone! Now my I need to figure out my Weber 32/36 Carb is drowning my spark plugs. I will have to pull and dry the plugs, start the engine and try tuning the carb so it doesn't continue to flood the plugs. If anyone has recommendation on tuning the carb.
Final recap to swap E30 M10 into 2002 E10 parts needed and connections: (Bosch) Transistor ignition module (Part# 78070005 ebay $13 new), transistor coil from E21 (pick-a-part $9), Module harness with distributor wire (part of the harness) supply'd by Mike (Thank you). Connections using the diagram posted by Mike Bosch Module upper picture: Wire 1 (Black wire) to coil negative side, Wire 2 (Brown wire) ground to body, Wire 3 did not connect at all, Wire 4 (Green Wire) power supply connected to original 02 distributor condenser wire with a fuse, Wires 5&6 are the plug that goes into the distributor. I also grounded the distributor to the body. Final is the ballast resister (white ceramic thing on the coil) make a jumper wire and connect both wires together from the resister. Done!
F.Y.I. I talked to Steve from Top End Performance in North Hollywood today and the best way to do all this is using a MSD Box, Tach adapter and Bosch red coil. I'll see how my current setup works and if not I'll go MSD setup.