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The engine temperature sensor in the B280 is indeed mounted in the Thermostat Housing (facing the left side of the car). This is actually a dual sensor unit, as both the Fuel Injection Computer and the Instrument Cluster receive their signals from this one unit. (unlike the B230 engines where there are two seperate sensors)
If you sensor is still within spec, check the electrical connections on the back of the instrument cluster and the ground connections (for the insturment cluster and the engine-to-body connections).
God bless,
Fitz Fitzgerald.
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'87 Blue 240 Wagon, 254k miles.
'88 Black 780, PRV-6, 147k miles.
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