exactly. hell you can rewrap the harnesses if you have a month to take everything apart and reassemble :-)
I meant grey/red!! sorry about that. they're hard to miss as they're all over the dash, anywhere you have an interior bulb.
here's an 85 325e dash lights page, showing fuse 23. I'd be shocked if your euro 323i is much different than this. leaving it big so you can zoom around

Any wire labeled "GY/RD" is grey/red. the number in front is wire gauge in mm. ALL your grey/red wires are shorted to ground, because they're all wired together and at least ONE of them has cut insulation on it that is either touching the chassis somewhere or one of the ground wires.

you need to find the damaged wire.
If you've got sparks it's probably one of the brown/red wires that has their insulation pinched.
here's an 85 325e dash lights page, showing fuse 23. I'd be shocked if your euro 323i is much different than this. leaving it big so you can zoom around

Any wire labeled "GY/RD" is grey/red. the number in front is wire gauge in mm. ALL your grey/red wires are shorted to ground, because they're all wired together and at least ONE of them has cut insulation on it that is either touching the chassis somewhere or one of the ground wires.

you need to find the damaged wire.
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