I can't help you with the 1G year question, but it's the 7M series which is (fairly or unfairly depending on your perspective) known for blown head gaskets. I've never heard of the 1G having that tendency.
TEMS (the electronically controlled suspension system) is pretty reliable, few problems with the system itself though to the best of my knowledge there's only 1 kind of shock which works with it, the Illumina II. You can use a number of other brands and types in place of the Illumina, but they won't work with TEMS and allow you to adjust them on the fly.
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