Fluctuating Temp Gauge
In my experience, I've had to buy the gasket separate from the 'stat, and I always use a self-adhesived gasket. Always. That's because you have to use the gasket to keep the 'stat in the housing while you put the housing against the intake manifold.
Further, I always use a bit of sealant on the BACKSIDE of the gasket. I hope you got the "backside" hint because any sealant put on the adhesive seems to ensure the gasket will not stick and the 'stat will fall out of the housing. Don't ask. Anyway, put the 'stat nestled in the housing's depression with the copper bit sticking out and put the gasket's sticky side against it. And make sure the 'stat doesn't shift and get out of the depression. Don't ask. Then, put a bit of sealant on the backside of the gasket, put the contraption against the manifold, and insert the bolts.
HOWEVER, make absolutely sure you pay attention to which bolt goes where as one is longer than the other, at least on a 351W, and if you swap them you WILL have a leak. Don't ask. If you put the longer bolt in the short side it won't pull the housing up to the manifold, causing the leak.
Having said all of that, there is another type of housing that requires a different 'stat, one that isn't a full circle. The housing has slots that the wings of the 'stat go into and then you turn it and it is locked into the housing. These don't require the adhesived gasket, but it doesn't hurt. I'm not sure which engines these came on but know they are out there.
Will try the tapping procedure when I leave my work place today.
I found a post about the voltage regulator losing ground and causing the gauges to peg with a suggested solution of cleaning the ground and cleaning the printed circuit. Is this worth a try?
You can apply a small amount of dielectric grease to protect the copper from oxidizing again. Just becareful and don't scrub too hard with the eraser as the copper is just "foil" stuck to the printed circut and can be damaged by over "aggressiveness".
May not eliminate your problem, but if you are going to replace the ICVR anyway, would be good preventative measures.
Thanks so much for the good comments.
Also check the negative battery cable to engine block ground, (V8 engines) or the negative battery cable - to frame - to starter mounting bolt cable, (Inline-six engines) as these need to be clean and tight for the engine to cab ground to be effective.

There is also a ground wire below and to the right of the radio that grounds to the dash support frame. Look for a black wire or wires attached to the support metal with a hex headed screw. You would need to remove the radio to see this ground.
Also there are lower support brackets for the dash assymbly. Remove one of them, clean the metal where it attaches to the firewall on one side, and on the otherside where it attaches to the dash metal assymbly.
Then you can clean any component, such as the underdash courtesy lamp housings for example, that bolt directly to the dash support for ground etc...
That should take care of any ground issues to the dash metal support.
Usually though, the ICVR will stick causing this problem. The ICVR gives off voltage in pulses to regulate the voltage flow. When it sticks it alows full voltage to the gauges, pegging them. Why hitting the top of the dash seems to work. It "unsticks" it for awhile. A bad ground can cause the ICVR to stick but not as comon.
Still cleaning the grounds is a good idea.
I removed the instrument cluster, removed the ICVR, cleaned the part of the bracket on the ICVR that contacts the copper coating on the printed circuit, cleaned the corresponding part on the printed circuit, even took the ICVR apart and very cautiously cleaned the contacts that open/close. Reassembled the ICVR, mounted it back on the instrument cluster, re-hooked the ribbon cable to the back of the instrument cluster, turned the key, and was disappointed to see the fuel gauge needle peg to the right. I started the truck and now the oil pressure needle also seems to be further right than normal (however the truck was cold and the oil pressure will usually read higher right after I start the truck). Bottom line is the problem is still with us so apparently ICVR replacement is necessary. I found an ICVR on Ebay for $37.50 shipped but unfortunately do not have an Ebay account. Went to Autozone, Advance, & O'Reilly's but they did not have the part and could not get it (AZ & O'R). So, do any of you know a source for a replacement ICVR? I can use the truck "as is" but surely putting 12 volts into gauges that are supposed to be getting about 5 volts will eventually destroy the gauges. Any help appreciated.
The ICVR is very delicate inside. Never thought to advise you not to open it to clean it.
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