Thanks for the replies.
The sensor is one of, for the small individual research project in university.
I am monitoring a small oil reservoir temperature, which is attached to the damper (sensor is glued into the casing with low thermal resistance epoxy). Damper is being tortured by a testing equipment. Depending on the settings, the temperature can shoot from ambient to 80-90degreesC in less than ten seconds. So the temp range is pretty small 0-100degreesC should cover 99% of testing easily. And +/-1 degree resolution should be more than enough.
I chose the in chip sensor due to convenience, and ease of use. I watched Dave's one of the videos about thermocouples and it looks like it is very complicated to measure temperature (reference tables, cold junctions, conditioning circuit - I am more of a digital fan

)
Would I be able to use the D18S20 as a cold junction reference?
I am also connecting the sensor to the arduino and have an extra 16bit ADC with one spare channel, so got some extra capability for measuring voltages if need arises.
One more thing to consider, the damper is connected to the massive linear motor (electromagnetic actuator). Would a thermocouple work as aerial and pick up all the noise?
EDIT. ciccio, your PT100 RTD sensor recommendation at first glance looks very promising. IST PT100 RTD sensors are relatively reasonable cost (3-7 quid) and response times are much better. Are there any catches with their use?
Thanks