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I always thought that the part highlighted in yellow was just a distribution block. The stett oil cooler doesn't use that half of the housing. They have their own distribution block and a separate thermostat downstream.
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--Marcelo
'06 Arctic Metallic 325i | Sport Package | 6MT | Dinan Stage III suspension | Dinan exhaust | 330i manifold swap! Click here! | Active Autowerke tune | 135i Brake Calipers | Deiselboost caliper brackets | E46 M3 front rotors |