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Joe,
If you will go to the FAQ section of this web site for 700 and 900 cars, you will find about all you need to know about temp sensors. (I know you have 240, but it is pretty much the same.) However, you might want to check your oxygen sensor. If it has a three-wire unit, the two white wires go to the heater part of the sensor. Ohm it out and see if you have continuity through the unit. If that is failing, you will have similar symptoms to what you are experiencing.
The connector is on the firewall on the passenger side.
Good luck
Jon
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