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The sensor is located in the bottom of the passenger door mirror, I have not yet changed one in a 406 but have recently fitted one in a C5 and for that you have to remove the mirror glass but I think maybe the shell comes off the back of the 406 mirror if it has the same mirrors as my Hdi.
The symptoms you describe are typical of sensor failure. Unfortunately I have only found these to be available from the dealer at around £30.00, you could get a secondhand one but you need to test it first as they are prone to failure with age and high mileage.
You don't need to remove the door panel you can just cut the wires in the mirror and join them to the new one, preferably by soldering and sleeving them, it doesn't matter which way round they go.
The display panel problem is probably just a bulb gone.
Edited by Peter.N. on 26/12/2012 at 15:18
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