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E34 question



I recently glanced at the temp gauge and saw the needle 3/4 of the way towards
the "red zone."  After turning on the heater it crept slowly back to the
standard 1/2 way point but when I turned the heater off the needle went back up.
Is the car over-heating?  Blown head gasket?
I am close to 90k on an M20 enginge that is dealer maintained.

I appreciate your suggestions.

Mark 
'89 525i
markg@domain.elided