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For some reason the condensor is not getting rid of the heat and it is staying in the rad. Try flushing the rad and cleaning the condensor. This may or may not help. You have a build up of heat somewhere. If I understand you right this only happens when you have the A/C on and then stops when the a/c is turned off correct. I will try my best to help you out.
Try checking the temperature near the thermostat when it starts heating up with an IR heat guage... maybe the sending unit for the temp guage in the dash is crapping out.
I had a similar problem and goofy as it sounds the fan clutch was bad.
So Redboat, your guage was fluctuating up and down the scale?? Mine is doing this, and I replaced the t-stat, water pump, and hoses and I believe I have all of the air bubbles out, but I was thinking of replacing the fan because it has some cracks in it.
...but I was thinking of replacing the fan because it has some cracks in it.
If for nothing else, replace it for that. My old 4.0L OHV in my Ranger had a cracked fan, replaced it with an aftermarket fan, less than a week later the aftermarket fan developed a crack and tossed a blade. Not fun.
Actually after reading a few of these threads I searched I believe it could be a blown head gasket.
A year or better ago my mother-in-law was driving it on the freeway and called me saying it was very sluggish. I could not find any problems and decided to drive it home (< 40 miles). About 10 miles into it I had to kick down on the way up a hill, and it started acting more sluggish until the muffler exploded. Everything seemed OK, so I drove it the rest of the way home, never saw the temp guage go HOT. Did not drive it much since it made it home, but have noticed the temp guage fluctuating when i would drive it. Thought it may have been just the thermostat or cooling system, and I now think it may be a head gasket. Any thoughts from anyone? I am going to do a compression check when I get a chance.
If they overheat, the'll blow the headgasket quite nicely. On my Ranger it blew between the rear two cylinders on the passenger side sometime before I bought it.