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Hi from Norway, and before I start, I want to apologize for my poor English.

I have a 316 from 1976 that I want to modify with larger front brakes and convert from drum brakes in the rear to disc brakes. Due to an engine swap to M52B28, I'm aiming for a minimum of 292 mm in the front and 266 mm in the rear. Should I also potentially change the brake booster?

What parts do I need, and what is the easiest way to proceed?

Have a look for the ready made Ireland Engineering big brake kit for the front, and you can convert to 323i rear trailing arms with E30 calipers, that conversion can be found in the tech section. But there are people that have done more budget brake upgrades. I am using Wilwood 4 pots similar to those from Ireland at the front and E30's at the rear, and I'm really fine with the stock brake master and booster, even in the mountains or at a trackday.

Yeah, but since your 316 is a early type 1, you'll have the eary undercarriage. With a m52 swap, I'd suggest converting it, completely to a 323i set. So, complete front assembly, coils, ARB, subframe. At the rear subframe and trailingarms, with the discbrakes and the e30 conversion Jeroen mentioned.