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M20 overheating



My daughter's '88 325i is overheating, at least I think it is.  Last
night she said the "low  coolant" light was on and I filled the tank and
noticed the upper hose from the water pump to the water neck was holed.
I replaced that and filled the tank, bled the air off, and now it pegs
the hand when it warms up.  Any suggestions?  No visible leaks like
water pump, etc.

Bill-banger

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