I spoke to soom. Problem did not go away. When testing pin 8 with the code reader today, I still get 2 blinks which indicates a problem with the ECT sensor.

The ECT tested fine. 250 ohms at 85 C and 1200 ohms at 25 C. I cleaned the connctors and pins.

Does anyone have a wiring diagram and let me know what is conncted between ECU and ECT sensor? Does anyone know what triggers a ECT sensor fault. Does the ECU compare the ECT sensor with another component to determine if the ECT sensor is good?

ECT sensor B11/3 is wired directly back to HFM/SFI N3/4 modules pins #28 & #36.
Sensor is monitored for short or open circuit.
R value comparison was not until '95 E320 version.
Suspect is harness.

Arthur, many thanks.

Cold start problem resolved. I opened the wiring sheathing to the ECT sensor and insulation toward the end of the connectors was disintegrated and bare. I taped up the bare wires and the car now starts fine.

So if anyone has unexplained codes and the sensors are fine, cut open the wiring harness and check it.

You need a Wire Harness.