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I had an issue with the temp gauge not working. I jumped out the sending unit connector and the gauge shot all the way to hot. I replace the temp sending unit (the one with one wire) and it still doesn't work 100%. It will get in the normal range when idling but drop below the 'C' when driving. Any ideas?
I agree with 87XLT, sounds like a misbehaving thermostat, had the same condition on my 99 4.0L last year, new termostat fixed her up. My Haynes manual specs the thermostat housing bolt torque at 120/in/lbs.