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check to see if there is a break in the wire somewhere between the sending unit and the gauge.
you have fluid come out of the port where the sending unit goes? how long did you drive it for?
I had almost the same problem, it ended up being that the parts store keep giving me one for a dummy light so it wouldnt read until about 40-45 min then would peg hot. If you let it sit and run for 45 min what does it do
All of the coolant temp sending units should be a single wire. The coolant temp sensor if for the ECM and not the gauge.