BlackBMWs, I just saw this heater hose thermostat gizmo in teh Phil's "mess under the manifold" photos, so now I know some cars have it, but I don't know how it is supposed to be connected. I suspect some prior hack connected it wrong, because it would be useless feeding into the same line as I have found it on my car. Questions:
1. The long heater hose that goes from the end of the plastic pipe on the side of the block to the firewall--Should it connect to the upper or lower heater fitting on the firewall?
2. The small-diameter hose that goes from the aux thermostat to the T-fitting--Is the T-fitting in the long heater hose line on your car?
So, I only have this one picture, as I had to buy the "j" shaped hose.

I did end up cutting the hose in the foreground going into the T fitting by about 3.5" to become the hose on the other side of the t.
So,
the answer to question #1 is
upper heater fitting.
<-----Correction The lower hose goes from the block/head to the aux thermostat to the lower heater fitting. Just went outside to check.

the answer to question #2 the T fitting is on the upper hose.
Hope that helps...
Just for fun, here are most of the fuel, vaccum and coolant hoses and o-rings that were swapped out.

BTW, I still have my E28. Too fun to lose... :cool: