Techncially, my understanding of the ATF is that you cannot have sufficient parts in it (or readily at hand) to make it FIRE full-auto. So in an abstract theoretical sense, any and all parts are fine, as long as at least
one critical component is missing.
However - the consensus seems to be that it is generally a bad idea to start installing full-auto fire control parts (even if not enough are installed for full-auto operation), because the ATF could start to argue that it is sufficiently easy to drill a small hole and drop in one more simple part - or something like that.
However, the M16 carrier is very common-place, and the ATF has written at least one formal opinion/ruling that says it is okay. Several manufactures (including Colt) regularly ship semi-auto AR rifles with M16 carriers.
So the carrier is fine - just don't get any other full auto parts to install or have lying around your house, next to your drill press.