Hey Big Don.
When my thermostat froze open-better than froze closed. I was in the desert and thought the gauge was bad too. It read barely in the normal range. I now replace the thermostat at every coolant change.
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'93 W350 Club Cab, 5 sp. , 129K, Factory Options: LE, 4. 10, LS, 7600 lb. rear springs, tachometer, front stabilizer bar. Mods: Banks stinger plus, Linex bedliner, 25,000 lb gooseneck, 10,000 lb receiver, Tekonsha brake controller, PW injectors.