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In Reply to: I think that is a different sensor posted by Jim Cash on October 06, 2000 at 18:46:54:
Looks like the sensor is OK, but just located in the filter box in the top of the engine compartment and gets engine heat effect. Once warmed up it is about 5 degrees hotter than my 3 series temp. Probably better for air temp adjustment to engine computer, but it bugs me a bit when I expect an "outside" temp.
Ahhh - I do not knwo for sure on the 7 series, but every other BMW I have seen (including my E39) has the temp sensor for the Computer located just above the road surface - below and just behind the front bumper.
It is located there to read the temperature at the road surface. Not very useful in summer - but it's main purpose is to warn you of freezing conditions just before they occur.
The is a temp sensor in the engine air intake (filter box) but that is only used by the engine electronics.
Cheers
Jim Cash