Remember, the symptom is that it stalls but then restarts again. If the O2 wears out, it doesn't cause this. Only if the O2 has a internal short will it cause the engine to run terrible and stall. It won't resart easy either. A shorted out O2 stranded me once and the heater wires melted. I now have the O2 fused. 
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Stalling and restarting sounds like AFM.� This is why VW made a capacitor harness. if it starts right up after the key is off and runs good then it might be AFM . Blue smoke is unburnt fuel , Fuel loads up in the intake manifold unilt it starts. Without a O2 sensor on line (open loop), open loop running is rich, hard starting when warm or hot outside. 
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Is it hard-starting?� Does the cutting out /stalling happen randomly with no certain interval? 
Robert
1982 Westfalia
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--- On Sun, 5/17/09, David Beierl <dbeierl@ATTGLOBAL.NET> wrote:

From: David Beierl <dbeierl@ATTGLOBAL.NET>
Subject: Re: Do I just cut the wire from the O2 sensor?
To: vanagon@GERRY.VANAGON.COM
Date: Sunday, May 17, 2009, 3:22 PM

At 05:52 PM 5/17/2009, Bernie wrote:
>I am mechanically challenged so when you say to disconnect
>it do I just cut the wire coming from it.

Goshsake no.� There's a plug...unplug it.� If it's a 2.1l engine
there are two plugs -- you only need to unplug the one with a single wire.

>Thanks
>
>Bernie