The way I understand it (and I may be wrong), if the engine dies while you're at speed the tires won't lock up. You're engine would basically be a big, complex mechanical brake that will slow your tire speed down. In other words, the energy from your tires rotating will drive the engine instead of your engine driving the tires. The amount of energy required to "drive your engine" will continually slow your tire speed down as it uses that energy and you'll eventually stop.
This is all assuming that you aren't in Neutral or disengaging the clutch of course. If you held the clutch in you'd just drift along. If you held the clutch in, slowed down, didn't down-shift, and popped the clutch at slow speed the tires could certainly lock up since they wouldn't have enough energy to drive the gears (similar to what it would do with the engine running). It's all an issue of matching tire speed with engine speed. I would imagine that shifting down to 5th with a dead engine would be rough since nothing is keeping the engine turning except the tires (through the clutch and gears). My hypothesis is that speed shifting (no clutch) would probably be the most "smooth" method of shifting; if you can accomplish it and you feel the need to shift.
Having all the time in the world to think about it I think I would just clutch it, shift to neutral, drift, and stop using the brakes. It may or may not be the most correct action, I've never really thought about it before this thread came up.
Thanks for sharing your experience with us Osoreru!