Cooling fan blows fuses

[drycell]

My 88 260e was overheating badly. It gets hot and spits water out from under the battery. At first I thought it was a bad heater core hose, but after reading the forum I realized that was the overflow tank. Anyway, the cooling fan fuse blew, which I believe it was made the car overheat. I put in a new 8 amp fuse, which blew within 10 seconds. After that I put in a 16 amp fuse, and it has yet to blow. Is there any reason why it would do that? Bad fan? Also, I believe it is still losing coolant from the tank, although I can't understand why, because the temperature gauge says it's right where it should be. Also, the low coolant light is staying on, although it's full. Any help would be great, it's driving me nuts!