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i got an used 01 vw beetle(auto) with 132k miles from someone who worked in the same company I am working now. Over the long weekend we took this for our 200 mile drive and it ran good. Then we noticed the check engine light on. Took it to a local autostore and found the following codes,
p0116 - Engine coolant temperature sensor
p0170 - Fuel trim bank 1

Removed the battery connection and noticed the code went away. We took the car back to our home for some 200 miles again. No such check engine light.

My wife took the car for shopping yesterday and noticed the check engine light came again. I checked and the codes were same. I had the codes reset using a obdII scanner i had in hom and after i started the car - it stopped immediately once it reached 1000 rpm.. Then I turned off the ignition and started again and ran without any problems.

Then I researched online and found this could be a faulty sensor and somewhere it was mentioned to change air filter(for p0170) as well. Went to autozone and bought/replaced engine coolant temp sensor and air filter on my own thru some online information. After i changed - i started the car and it struggled to pick up the rpm and wanted to die. I pushed the gas and it picked up the RPM and engine was able to maintain RPM BUT Once i set the "R" reverse gear it shaked and about to die then I set the car to "P" park gear and i pushed the gas to increase rpm and instead of doing "R" i took the transmission all the way to "1".. then to "R" and it was behaving normal. Then i drove for 10 miles and did NOT notice any engine light..

does the wired behavior after the code reset thru my OBD II scanner could be something the computer is getting adjust to the new sensors? Should i have to do this by disconnecting battery?

is my timing belt going bad?

is my water pump going bad?

I assume the check engine light would come after driving 200 miles.. Was it always going to be 200 miles for a vw beetle computer to receive feedback from all sensors in a cycle?

Any help would be appreciated?

I ordered a vag-com online - can you suggest me some steps on identifying any major issues thru vag-com?
 

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So here is my take, likely your coolant sensor code was less to do with the temperature sender and more to do with a soft thermostat. Your engine temp should be around 205F at idle after about 10 minutes of driving. You DO NOT want to drive a car with a cool running engine, the 1.8t oil pick up WILL get clogged if you continue to drive with a cool running engine.

Suggest you read the 2nd link below in my signature.

As for the lean codes, check the small black and white check valves on top of the engine. The white portion of these check valve disintegrates with heat and age.

Once you get your VCDS, check the Long Term Fuel Trim while the engine is warm. It should be between 0% and +2.5% anything higher and you likely have a crankcase and/or intake air leak. If your orange dipstick tube is broken, replace it as well.
 
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