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While a bad coolant temp sensor can cause a no-start, it is not a common issue. It would not cause the engine to fail to turn over.
Regarding the fuse, you don't specify which one. Some that fail can definitely cause the engine to not start.
Diagnosing no-start situations can be difficult and lengthy. The best approach is to think about which system is likely the problem and rule them out or in.
Usually check fuel supply first. It could be out of gas, have a clogged fuel filter, failed fuel pump relay, failed fuel pump, failed fuel pressure regulator (not common).
It could be an electrical problem such as a bad battery, bad alternator, failed DME relay, failed crankshaft position sensor (very common), failed coil(s), bad spark plugs, failed DME and the list goes on.
I don't mean to sound trite, but the best thing to do is get either a hard copy of the Bentley manual or the downloadable version in PDF format. Start reading about how to troubleshoot to find your system that has failed and then narrow it down. If you don't have a lot of mechanical skills, then I suggest you take it to a reputable independent BMW mechanic.
Keep an eye on your original thread and I'm sure others will chime in as well.
Good luck and we will do all we can to assist you.
Steve
EDIT: I did not see a thread on the E34 forum and had to search for the thread and found it on the member welcome page. Please re-post the E34 portion in the E34 section.
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Steve
Calypso Red 1992 525i with 170K miles
1991 735i - Sold
1992 525i - Sold
1995 325is - Sold
2000 528i - Sold
Last edited by BMR_LVR; 05-17-2011 at 01:56 PM.
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