Water Temp Gauge On 95 Gt Question.

My totally stock, 99,500 mile 95 GT convertible sat for 6 years while I did a bare metal re paint. I obviously only worked on it part time, but it is now done. The water temp gauge was going to the top when I first started driving it again this past week, so to be safe, I replaced the t stat with a new Ford stat. I tested it on the stove to be sure it opened at 195, and it does. Gauge still did the same thing. So, a new radiator from NAPA, back flush, and fresh coolant. Now it takes much longer, but it still creeps up to the top of the gauge, and even the service engine light comes on. So yesterday I bought a infared thermometer, and while the gauge was up high again, it showed no higher that 199 degrees. Is there a some kind of sensor that controls the gauge that could be bad? The oil pressure also reads higher than normal too. The car runs perfectly fine, hasn't boiled over, and, with the cap off, I'm seeing great flow across the top of the radiator. Any help is appreciated!

Thanks jrichker, I appreciate the tip! I just got home from its first real drive, and most of it was highway. From my house to an exit, going 60 mph, air off, 70 degrees outside, about 10 miles. I pulled into a gas station, gauge was at mid point. Infared temp gauge indicated 195 degrees, lower hose showed 145 I think. Upper hose was very firm, car idled just fine. I turned on the air, and the temp went up to 200 degrees, and the gauge went up a little. Got back on the highway, went about 15 miles, got off. While driving at 35 mph on a city street the gauge pegged, and the service engine light came on. Less than 30 seconds later the gauge went back to the "m" in "normal" on the gauge. When I got home 15 minutes later, in my driveway, with the air on, idling, I saw 205 degrees, the highest I've seen. I have to think that is ok temp, isn't it? I want to drive my car, this is frustrating!

I used a new Ford t stat, and there is a little tit at the top of the t stat that corresponds with a groove in the t stat housing. Shouldn't the lower hose be cooler anyway since the hot water flows across the top of the rad, through the tubes and past the electric fan, and out the bottom? What is the factory temp range, regardless of what the gauge shows? I think the tit on the stat forced me to put the spring towards the rad, otherwise it would fall out of the housing.