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E30 325is Questions (Check Engine)

Any E30 owners out there know what the "Check Engine" light means?
The Owners Manual says it means the "Emissions related electronic"
should be inspected.  Is that the O2 sensor?  My light came on last
night on the way home and stayed on through several start/stop sessions.
This morning it was off.

Also, my car has 134,000 miles on it....on what I assume to be 
original shocks.  No bushings have ever been replaced to my knowledge.

A rather annoying "clunk" has developed in the front end when driving
over bumps etc.  Feels to me like the shocks are worn-out, but a local
shop tested them (rather informally) and said they were fine.  I could
not find visual indications of any of the front suspension bushings
having failed...they all look good and nothing looks loose.

Any ideas?  I was certain it was shocks...but they do still seem to
be dampening.....

Sincerely,
TJ Noto
Palo Alto, CA
87 325is
95 Ducati 900SS SP
70 Triumph TR6
65 MGB