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Temperature sensor for the gauge 700

Hi,
I have a 1988 740 turbo wagon with b230ft engine. I have a few questions concerning the engine temperature sensor that is used for the gauge.

The problem is the guage will get to normal temperature, then after a while start violently shake up and down until it jumps around at just above lowest temp (but the guage needle never gets past half way and definatley not the red area), then if I drive long enough, say 25 miles, the needle will bottom out as if the car is cold and stay there not moving. After bottoming out, say in another 10 miles or so, the needle may, or may not, start to dance around again.

Sorry that was long but does this sound like the sensor is failing for the gauge?

And just so I can rest easy this sensor has nothing to do with the ecu or fuel delivery right?

I have read how to test this sensor but wanted to know if this sounds like a failing sensor.

Thanks for any input,
Benton






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