Engine Cooling problem
1995 BMW 318 4 cyl Two Wheel Drive Automatic 155000 miles
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1995 BMW 318is, 155,000mi

I recently purchased this car (very cheaply, knowing it had issues). Currently it is badly overheating. The previous owner had it in the shop, and they replaced the thermostat and coolant pump. (I verified this) I have flushed the system (engine and radiator), drained and filled the system several times. When I start it up, it remains cool briefly, then the temp gauge continues rising without stopping until it overheats. At this point, the fan has kicked on, and the system is pressurized, but both hoses are very hot. The radiator is in pristine shape from the outside. So basically from what I can verify, all the components are working, but the system doesn't seem to be cooling at all.

At this point, should I suspect a blown head gasket? This was suggested, but there doesn't seem to be anything but oil in the oil, the coolant is clean, and no smoke or steam coming from the tailpipe. Would a head gasket cause the above? Is there anyway to verify a problem before I undertake the project?

Additionally, the heater isn't blowing any heat, even on the hottest setting. I don't know if this is relevant, if not it isn't a concern as it is summer in NC. Any suggestions, solutions, or even just directions to take would be helpful. Thanks!

Have a compression test performed on the engine. A head gasket or cracked head can cause the engine to overheat and in some cases you will not see coolant in the oil or white smoke out the exhaust.