Need Immediate Advice on Overheating E30

[redlightpete]

Pete,
Are you talking about this?

http://84.45.115.78/e30zonewiki/index.php/C191

If so I could see why this could be another issue I should check. Any advice as to checking if it is faulty besides just a visual inspection?

That's it. If it's bad it will probably be a corroded green mess. You can check it more accurately at the connector to the Motronic unit. If you attach a multimeter to the pins for the temp sender you can wiggle the connector and see if the readings change. Do you have a Bentley Manual? The procedure for checking inputs to the motronic are in the driveability section.