Interesting thread. Cheers for all the good info as ever guys. My 'Thermal Level Sensor' has started failing intermittently too. The temp gauge shoots to max and you get a "Check Engine Oil Level" warning when you switch off. You also get code 2C.
My question on the subject is this - as long as I keep checking the oil level, which I do every journey anyway, and as long as I don't gun the engine before it's warm (so just give it minimum 10 miles to warm up) then will it do any harm to run the car with this sensor being faulty? I have a crazy schedule before, and all over Christmas. I may not be able to fit this in as I need to do it at a garage as we need to drain the sump.......
UNLESS - does anyone know a way of doing this WITHOUT draining all the oil?!

Apart from that, I only did an oil change about 400 miles ago - it seems such a waste!
The car drives totally normally with the fault, so I guess the DME must use a different sensor?