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Ford 350 '91. For no reason temp indicator in dash indicated funny temps; like yours. Don't remember exactly. Didn't know if it was the gauge or the temp sending unit. Got a 300 ohm resistor and pulled the wire off the temp sender. Stuck the resistor between the wire and engine block (gnd). Indicator read about half scale and was steady. Replaced sending unit. Problem solved.
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Question about the heater hoses and radiator hoses. Is it possible that the heater heat loop is outside the control of your thermostat? If so your thermostat could be closed which would explain the cool upper and lower radiator hoses (no circulation due to too low a coolant temp). The heater hoses would be transferring the heated engine coolant that is not hot enough to open th e thermostat. Going to go out on a limb. Others suggested radiator problem. I say, if the thermostat opens and the engine is hot, natural thermal convection from the hot fluid in the block will cause the cool water in the upper hose to fall back into the block and be replaced with hot water. Granted circulation thru the radiator will help but it will still circulate on it's own. Mark
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