E36, O2 sensor

[Iju jacob <iju_jacob@xxxxxxxxx>]

the idling on my '92 325i has starting oscillating
between approx 700 and 1100 revs, since i upgraded to
a JimC chip from TurnerMotorsport.

This seemed odd from what i've heard about the chip. i
checked for fault codes on the Motronic (using the
Peake scan and reset tool
http://www.peakeresearch.com/products.shtml), and it
reported an O2 sensor error code. so far so good. but
when i tried physically locating the o2 sensor (refer
Bentleys pg:130-8, i found that this particular car
does not have an oxygen sensor. 

The wiring harness is all in place, but the connector
has a dust cap instead of the O2 sensor at the end.
Next, i tried locating the O2 sensor mounting hole or
nut or stud in the in exhaust pipe, but again no luck.

I asked the local dealership about this, and they
replied ..."this is required only in cars with
catalytic converters or in cars that run in
high-altitudes". they also told me that my car does
not have a cat. i live in the middle east (almost
sea-level).

This sounded slightly off to me, coz i'd always
thought that the O2 sensor was very important in
maintaining the ideal fuel-air ratio.

Did anyone one have any similar experiences... or know
why the O2 sensor is not required?
Also can the oscillating idling problem be solved if i
have an O2 sensor installed? (the ICV tests ok)

TIA, Jake.
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