The good news is that I got it all setup and working perfectly. And looking back on it, the reverse camera that Jeff offers is probably one of the most simple and e46 stock-compliant reverse camera installs for the Dynavin. I learned a lot of Dos and Don'ts in the process:
When installing the camera light in the trunk handle...
DON'T wire the camera through the hole behind the back of the lamp, possibly melting the cable...and your car.
DO poke the wire through the foam backer and cut a channel in the backer for the wire to lid connection. This way, you won't need to pop open the trunk handle casing, which will most likely break.
When threading the camera wire through the elephant trunk rubber wire conduit connecting the trunk lid to the body...
DON'T try to fish the wire using a flat coiled cable fish wire. Only giving birth will get that through.
DO use a straightened coat hanger wire with a hook on the end and tape over it heavily, then cover it with lubrication. It will take work, but you can pull it through, as long as it doesn't get caught on any other wires.
When connecting the red camera side power wire...
DON'T connect it to the reverse light fuse in the glove compartment. That fuse is actually always on. If you make the other connections and try it, the camera will turn on and work, but it will never shut off, did you can't change it from the Dynavin. Great if you want it to be a reverse camera only, but you may want to play some music sometime.
DO take the wire and patch it to one of the the reverse light power wires in the trunk. The Bentley manual confirmed that the 2reverse light power wires are blue with a yellow stripe and use the elephant trunk tube to go into the trunk lid. If you get a T connector for 18 gauge wire from Radio Shack and attach the red power line to the blue/yellow wire heading into the trunk lid, you a set. As for the black ground wire, there is a ground nut on the body right next to the trunk tube. You can easily use the nut to tie it down.
Went connecting the red power wire on the RCA side to the Reverse cable on the back of the Dynavin...
DON'T just wrap the wire around the connector. It looks crappy and probably will work that way, too.
DO add a male bullet connector for 18 gauge wire to the red wire, then connect into the female bullet connector already on the end of the Dynavin reverse cable. Looks and works much better.
Hope this helps everyone in their future installs!