OK a D2 series bulb is a completely different shaped base that will not fit into an H7 opening, dont even attempt. An H7 kit will be mostly plug and play. You will need to find a place to mount the two ballasts and will need to use a 1" hole saw to drill through the rear bulb cover to fit the new wires through. Dont worry there is a rubber grommet that will seal the hole back up included in the kit. DO NOT BUY XENTEC HID kits, they suck. I used to sell those first andI had so many of the ballasts go out quickly and I had to pay return shipping to claim warranty. If you want something totally awesome and custom to do to your pepper buy a HID projector retrofit kit from here:
http://www.theretrofitsource.com/index.php?cPath=25
They have EXCELLENT customer service and can answer all your questions in detail even through email. I would recommend the FXR projectors or the TSX-R. The cutoff lines are amazing. If you dont feel up to the task of cutting and modding them yourself, they have recommended installers you can send them to to do all the work for you. This is your 98% legal alternative and eliminates the reflector setbacks.

 

I wouldn't go with a coated halogen bulb. The blue and purple coatings on these bulbs dramatically reduce the light output in the white and yellow part of the spectrum, which is exactly where the human eye is most effective! The human eye doesn't do well with blue light. That's why the lights used to illuminate the steps in movie theaters are blue - it doesn't distract you from the film. It also does a poor job of lighting up the steps. It's especially bad for depth perception. Keep in mind that while HID lights appear blue or purple to oncoming traffic, the light that they put down on the road is white. Also, in order to compensate for the poor light output of colored halogen bulbs, many manufacturers increase the wattage. This makes the bulbs run hotter, and can actually melt your headlight housings.

I'd either stick with good quality halogens, or do a proper HID conversion.

 

Where does a guy get something like that? I'm looking a 55w version in 4300k or 4500k.