Need help w/ AC compressor clutch not engaging (archive)

ON the way home from a rather normal drive, the AC on the E21 323i just decided to stop blowing cold. With the motor running, I can see that the AC comp. clutch remained dead stationary while the fan belt spun freely on the pulley. I got inside and switched back and forth on the AC switch but no AC, and no clutch engagement. I went to the fuse box to check for any blown fuses. I didn't see any blown. I then decided to see if the relay could be at fault. Since I don't know how to read German on my fusebox cover, I couldn't figure out where the relay is. I vaguely remember that the last time I investigated this, most of the relays existing were for fogs, hi, low lights, fuel pump,and one other that draws my mind blank at this moment.

I then went to the compressor side and peeked at the sight glass. I saw small to medium size bubbles effervesce about there. Bubbles kept streaming through the glass.

So I think I need to diagnose two areas - the AC relay & freon level. I don't really think it's the on/off switch at this point since it turns on the aux. fan. Can anyone help me with answers to the following:
1) Anyone know where the AC relay is located on E21 323i so that I can have it checked ?
2) Other than getting a new one to swap out, anyone know how to bypass the AC relay ?
3) Do the bubbles in the sight glass indicate freon loss ?
4) With enough freon loss, does this force the AC clutch from engagement?
5) Any other ideas for me to check ?

Thanks in advance for assisting.

Follow Ups:

Thanks for the great info : good tech advice for trobleshooting here. n/t DHoang 07:22 6/22/2000 (0)
many solutions david 17:02 6/20/2000 (0)
Some suggestions, not to be taken as definitive. Jim Baron 08:50 6/20/2000 (0)

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