Stop tormenting yourself over this, the stock guage is crap, just an indication of proper function, if you are really concerned pick up a new guage at one of the parts store for a few bucks and plug it in, then you will know for sure, no more doubts. Then if you want you can plug the old one back in if you want to keep the stock look. I prefere guages that show actual temperature and pressure readings, not the garbage that has a couple of lines on it.
I agree w/steve.don't rely on the dash gauge.get a good 1 an install it where you can see it good.when I rebuilt my 392,and about $3000.00 + dollars you want good insurance.get a good gauge on it.it'll pay for itself.Jeff:yawn:also goe's for the oil pressure gauge as well.
Been busy but the gauge can be as reliable as any electric temp gauge. Two variables to worry about.
1 ) the constant voltage regulator. It feeds an effective (rms) 5-6 volt dc pulsing voltage to the gauge. If it is high you will see a high scaled reading.
2) the variable resistance sender. Could have been swaped out somewhere along the way with an improper one. Sorry I don't know the intended oem resistance for the correct sender but sure some one can look it up.. Then you can test it @ 212f (100c) in boiling water and at a cold temp as called out in a spec manual. If you plot the resistance to temp curve on graph paper it should be a straight line inverse t to r but on a known path. Shifted to high or to low and the gauge will read in error.