Hi all,
I've had my 1991 318ic with M42 for 9 years and have kept things running pretty smoothly just reading posts on this site.  However I have not seen a post of my issue exactly so I thought I'd throw it out to those here with experience.
My normal operating coolant temperature has been creeping up ever so slightly over the last year or so.  Right now when running down the road at highway speeds it is about 1 to 2 needle widths above the halfway mark.  Although this is still in the normal range I don't really like seeing it there since for the last 8 years it was rock steady on the halfway mark.  I've got just under 220,000 miles.  Over the winter I replaced all hoses, water pump, thermostat, belts and a slew of other parts with absolutely no change in the temperature.  I have no coolant in my oil or oil in my coolant and my compressions were 185, 187, 185 and 186.  The gauge is rock steady so I do not suspect a loose ground or other wire.
My gut says change the temp sensor but wanted to check with the experts before I do just in case I'm missing something.
Thanks,