I've read that it could potentially damage sensors or get water in the brake lines and cause rust or other things like that. Has anyone had this done before?

 

I personally,wouldn't do it.Nice very damp rag and some cleaning solution,works all the time.

 

It can cause problems by putting water vapor in electrical connections (steam can get places liquid water can't)

 

I've done it, but only on non-computerized vehicles.
I always did it with the engine running, so I knew what got wet when/if the engine died.
I also tried to avoid spraying directly at the carb, dist, and alt, for obvious reasons.
Too many things to avoid with all the connections on computerized engines!

 

I dont think I'm going to take the risk then

 

I have never done it and I hate water on an engine. My engine needs cleaned bad and a good steam or hose down would do wonders, but i'm not going to do it. I have seen guys soak the engines. When I was a service advisor at a BMW dealer we would tell people that we will not clean the engins as part of a detail due to many cars not starting for days afterwards.