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I would consider the possibility that the code and the problem are unrelated, or are both due to some third problem such as a poor ground connection. A problem with the TPS should not cause the engine to cut out.
Check over the wiring carefully, particularly the ground connections. I am not familiar with the '89, but the e36 has a ground next to the right engine mount and one tucked beneath some other stuff on the right inner fender.
The hesitation while accelerating or turning a corner suggests possible water in the fuel or a plugged fuel filter. How old is the fuel filter? A bottle of HEET to put any water into solution won't hurt anything.
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