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1999 BMW318i temperature gauge problem when cold?

During winter, I am assuming due to the cold weather, approximately 3-4mins after setting off the temperature gauge shoots to maximum (it behaves normally initially). This causes the engine management system to drop the revs causing some minor driving problems, but after a few minutes the gauge falls back to normal and everything is fine. The temperature sensor has been changed to no avail. Any ideas?
Rob K, January 2009
try checking the thermostat operation

paul, February 2009