The sensor you're talking about could be the oxygen sensor and might be the one turning the check engine light On.
You didn't mentioned anything about overheating-if its losing coolant and the water pump is not working you will overheat. Is you temperature gauge working?
Get it block tested to find out if you have combustion gases in the cooling system.
SPONSORED LINKS
Friday, December 28th, 2007 AT 3:52 AM