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I am not sure about the location of the indicator. If it looks a bit like a radiator (what I am guessing the cap you are referring to), it looks like the low coolent alarm.

I have (just about to lose) a TD 405 with what I think is the same engine. When I saw this light it meant one of two things - an electrical fault or it was time to change the head gasket.

About the temperature. My 405 ran at about 75 to 80 degrees unless I was running on long down hill runs or when I was getting air into the diesel lines, then it ran cooler. This I always thought was a bit low but I never spent the time to check if gauge was correct from an independent reference.

Good luck.
 
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