testing the thermostat:
1. Pick up a new one (you'll likely need it anyway and they are cheap).
2. Pick up a gasket or use hi-temp RTV sealant for use on the re-install of the old thermostat or the new one.
3. Remove your current thermostat (further known as "stat").
4. Boil some water on the stove with the thermostat in it from the beginning. Monitor the temp with a candy thermometer, etc to see when the button in the center of the thermostat drops to let the coolant flow (when it would be installed in the car). If you have a 195* stat, it should open within a 5 to 8 degree tolerance and close after that range, hence measuring with a thermometer.
5. Place some ice (carefully and slowly!!!!) in the boiling pan to get the water temp to drop and observe the stat closing back up as the temp drops.
6. If your stat does not act like a temperature actuated valve, it's shot. Coming on 10 years of constantly opening and closing, it could be done for.
7. If it's shot, use the new one you bought (from step 1) to replace it. Seal up everything, start it and check for leaks.
8. After one good heat up/cool down cycle, check your coolant level and add as necessary, as you probably spilled some when removing the stat. Use a 50/50 mix of coolant and water.
9. Monitor your hot/cold cycle for a bit while idling and do another road test.
10. If the problem still persists, you might have blockage elsewhere, a faulty head gasket (check your oil for discoloration and increased level), or a major air bubble somewhere in the system. It wouldn't hurt to also get a new radiator cap, as pressure is a key component in a cooling system.
Hope this helps.