hi Big Harry,
on my 1993 2L turbo 940 there's 2 temp sensors. I think I'm right in saying the one nearest the bulkhead (v. difficult to see) tells the computer what temp it is and governs the cooling fan, the one nearest the front of the engine works the temp gauge. You'll also see a sensor stuck in the block - I think that's the knock sensor. From your post you say you've got a sensor in the stat housing, sounds easier to get to than mine. If in any doubt it should say somewhere in the FAQ.
regards
pierso
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