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Congrats on the new car! Sounds like you found a nice one. Yep, you can do the valves with the exhaust in place. Lots of things are a tight squeeze on the 914 but with persistence and some swearing it is feasible. Going to headers (w/o heater sheet metal) does improve access A LOT.
It sounds like your 'taco plate' (cover where the temp sender is) may be warped. The sender is under the little access cover. It sounds like the sender needs to be pulled; IIRC there is a little O-ring that seals it. That's probably leaking. Then, the access plate also has a thin fragile paper seal. It is probably a good idea to use a tiny amount of gaskacinch or curil type of sealant on the cover for good measure. DON'T over tighten it. That's why it's nicknamed the 'taco plate' -- it will fold in half like a taco shell if you overtorque. Then it's trashed.
While you're in there, you may want to consider going to a new numbered VDO temp gauge and matching sender. It's an easy and relatively cheap upgrade. Sure beats the 30 year old 'mystery gauge'.
Have fun,
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Chris C.
1973 914 "R" (914-6) | track toy
2009 911 Turbo 6-speed (997.1TT) | street weapon
2021 Tesla Model 3 Performance | daily driver
2001 F150 Supercrew 4x4 | hauler
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