Re: will bad warning module affect the performance of a motor?
Not unless it actually overheats and you don't know about it.
Surely joed is talking about the engine overheating, or could just as well run out of oil. All the module does is to get a ground from either sensor and sends a ground to the horn, usually in the control box. Switched 12v is on the other side and when grounded the horn sounds. That's it. The tan wire connects directly to the switch. If an over temp condition you get a hard ground from the switch located in the water jacket of the block.
If your engine has a module the blue tan wire goes from the oil switch to it whereby the module modulates the ground that it sends to the horn into a on off on off on off to make a beeping sound rather than a blast. This allows you to know whether you are being warned about excessive block temperature (solid blast), or oil getting dangerously low (beeping). Grounded wire goes via the tan/lt blue wire to pin 3 of the remote connector to the control box, which is also where the tan OT wire is connected.
Mark