I resently bought a 1988 325is from a car dealership. The dealer told me the car had a blown head gasket causing it to overheat. The car does overheat but there are no signs of a blown head gasket, no smoke in the exhaust, no oil mixing with antifreeze, no oil or water around the head gasket. I thought these were all the signs of a blown gasket, which this car has none! The dealer's mechanic told me he removed the thermostat and the car still overheated. After getting it home(towed), I stuck the garden hose down the coolant expansion tank and ran the car, still overheated! Next I opened the bleed air screw on the thermo housing and opened the radiator drain, ran the car with the garden hose in the exp. tank and the car ran cool!?! But at no point did I get straight liquid out of the bleed air screw, just steam and a few bubbles. I left it running and closed the drain and bleed air screw and the car slowly overheated again! I plan on reinstalling the thermostat ASAP and testing that, but no clue what to try after that possibly fails??? Please if you've got any info regarding the above problem let me know, your suggestions or solutions are greatly appreciated.