I have just recently bought this car it is a non turbo sw20 95 model. There is a red warning light on the dash board I believe it is for the fan in the engine bay. The fan never turns on, is this fan just for turbo models if not what exactly does the fan do. Also when is the fan supose to come on. Thanks

Did it just happen or has it always been like this?
 
There's the IC fan which has a warning light. Standard wiring makes it turn on after the engine bay temp sensor hits a certain temperature.
 
A lot of people just wire it to work 24/7 so this maybe why the light is on?

I have that same warning light on my dash.  Even though I know the fan is actually working and running the light is on all the time.  It's just the wiring i assume

Well the fan provides ventilation for the engine bay (eg. when stopped in traffic). If you know the fan is working but the light is still on, take the globe out.

The earlier NA models never had a warning light for the engine bay fan anyway, and why would you need one?
Maybe the light is for something else, oil pressure or sump oil level.   What does the red light look like?
 
As MR turbo said, the NA engine bay fan only comes on when the car is running and standing in traffic on a hot day.
 

You can test if the engine bay fan comes on by unplugging the temp sensor on the engine lid.

The engine bay fan has it's own ECU next to the main ECU in the boot.  Usually the only time it throws the error and lights that red light with the fan and picture of an engine is when people have installed a bigger fan and have it running off the standard wiring which draws too much power and causes the error which can cut the power to the fan.  Usually this is only turbo people as the fan is most used with the intercooler.
Disconnect/reconnect the battery and see if it works.  There could be a wiring issue; if wiring is shorted or faulty that'll do it.
 
I've just been playing with mine.

i seem to have this problem too.  Unplugged my temp sensor today, and the fan does NOT turn on :(  is there a fuse for the fan / fan ecu? I didn't use a relay in my install (using a DC fan) hope i haven't blown the ecu. :s

ditto. my fans no longer work now that I no longer have my engine bay temp sensor wired up... 
does anyone know how this sensor works? does it work like a thermostat and complete the circuit when it gets up to temperature? reason being is I want to know if it would be safe to connect the two wires and hard wire it so that it runs continuously 

Most likely you guys are all having the same problem as i did
if so you need to bridge the fan ecu in the boot cause the fan ecu will trip as soon as it senses a higher voltage being drawn
have a look here http://www.mr2australia.com/mr2play/tm.aspx?&m=55090&mpage=3
 in the last post, it refers to a post on MR2OC so you will need a account there to view it it shows you how to bridge the ecu etc.
cheers