ssvett,
Glad to hear you found the solution. Using a thermometer to test actual temperature is critical to ensuring that you will not dump a bunch of money on a problem that doesn't really exist.
I did have a big heat problem with my all stock '66 big block - it would run at 210+ driving easy around town and on the freeway I could keep it at 210 only by driving 55, but trying to sustain 70mph caused the temp gauge to creep up to the wrong side of the gauge... I used a thermometer to find out how hot I was really running - my gauge was indicating 210 when the thermometer said 205. It was comforting to know that I had been running a little cooler than I thought. What eventually cured my problem was ensuring that my cooling system was as efficient as possible.
I went through a check list to ensure that; I had a clean radiator, lower hose with spring to ensure it wasn't collapsing, the proper thermostat, that the clutch fan was working and that the shrouds and foam pieces (designed to direct air through the radiator - not around it) were in place.
After each step, I ran the car in traffic and out on the freeway. Flushing the radiator and installing a new 180 thermostat (instead of the 195 called for) lowered my around town temperatures some but didn't do much for freeway driving. My clutch fan was good - I tried a flex fan for a while and noticed no improvment. By reinstalling the foam pieces that channel the air through the radiator I picked up a few degrees on the freeway, but after pulling off the freeway and slowing back down (no more air flow) the gauge would start climbing again.
The last and most effective thing I did was to remove the water passage plugs from the side of the block... When I removed the first one, not a drop of water trickled out - when I stuck a wire in through the crud buildup I was rewarded with a gush of coolant and 30 some years of accumulated crap. I forced water in everywhere I could, water pump, thermostat housing and water passage plug holes to wash out as much of the crud as possible. I then buttoned it back up and flushed the system again just to make sure. I added distilled water and Redline's "water wetter" without antifreeze. The temperature outside was hovering about 100 that day - not uncommon for where I live in California in the summer. The car warmed up to 180 and then stayed there driving in traffic around town. On the freeway, at a sustained speed of seventy mph the gauge rose to peak of about 190. When I pulled off the freeway the gauge dropped back down to 180 pretty quick - and stayed there.
So as it turns out, the passages in the block had simply been clogged and cheapest fix proved to be the most effective. I have since put the 195 degree thermostat back in - runs right at 195 now - imagine that.