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I pulled the old ref. sensor out and just the end of it was covered with a silver paste like substance. Should that be there?
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The end of the sensor should be clean, the paste you are referring to has been applied to the ring gear at some stage to rectify a problem that the m112 engine suffers from (stops cranking).
Who ever applied the paste may have inadvertently applied to much, and excess paste has wound up on the sensor.
ozzy