where is oil temp sensor?
 

Where does he stock oil temp gauge get its reading?
Breather or cam chain housing?

It is located on the breather housing. The temp. switch on the right cam chain housing on later model turbos is part of the emissions system.

Shouldn't the temps at the breather be much higher than the cam chain housing?

If so, shouldn't we be using temps from the cam chain housing?

Any thoughts?

In looking in my service manual and the Pet CD, it appears that the temp sensor in the right cam chain housing and the one in the breather are the same part number and emissions related. The temp. sensor for the gauge is located on the engine case, right side, below the fan housing and and casting for the engine i.d. number.