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E30 325i thermostat stuck open ??

This morning I noticed that my temperature gauge wouldn't move out of
the blue during my 30 mile trek to work.  At first I thought my SI 
board was shot, therefore the temperature gauge would be dead.  But, it
just barely moved up to the upper edge of the blue.  While I was sitting
at a light idling for 2-3 minutes it finally rose to one notch out of the
blue (still not near the normal straight up position).  FWIW, there was
sufficient antifreeze, the heater was luke warm at best and the car is a
1989 325is with 78K miles (stock).

I figure that it must be the thermostat staying open and therfore the 
car is never fully warming up wrt water temperature.  

My question are:

Any thoughts on my analysis?
Any immediate harm driving the car with the thermostat open?
Any words of wisdom before I depressurize my coolant system?
And any suggestions about coolant, since there are numerous coolants
available to include Phosphate-free Prestone and eco-safe Sierra?

Please respond by e-mail (even if you reply to list) since I seem to get
100+ BMW list posts twice a week at best.  Thanks.

regards,

Daniel Adams