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ICQ>
Nick ---
I chased that problem on my daughter's '86 245.... new water pump, new thermostat, new belts, cleaned and flushed the radiator twice, new antifreeze. Same symptoms you have. Finally I pulled the compensating board, resoldered it and the connecting pins on the dash cluster, and cleaned the surface of the pins. The temperature was OK, but the gauge was giving a false indication. The car has been fine for 2 years and 35k miles.
However, I helped a friend with an '87 244 -- same exact symptoms -- and it turned out to be a marginally-plugged radiator. (In his case, we attached a thermocouple to the top hose and confirmed that when the dash gauge went into the red, the temperature was actually 240F.)
There's no single right answer.
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