Kenny,
It is totally acceptable to use a reducer. Inspect the reducer by screwing the sending unit into it and making sure the portion that goes in the water jacket does not make contact with the reducer. If it does, dremel, etc. until it is free and clear. Otherwise, it will give very false readings. None of these are 100% accurate anyway, but at least you have a better idea of engine operation.
Another suggestion, you might want to go to NAPA when they are not too terribly busy and get them to let you read through their application books. There will be pictures and descriptions of all the sending units they carry with the manufacturer, temp settings etc. You might be able to score a replacement sendor that reads the same max temp that fits your new head. Just make sure you don't get a european unit or one that has a metric thread and everything will be okay.
One finall suggestion. If you get one that fits the hole, but reads improper temps. You can go to radio shack and get resistors that you can solder in line to raise or lower the gauge readings. You would do this by putting a mechanical temp gauge in the other head and comparing the two readings. Mechanical tends to be more accurate. The guys at Radio Shack can help you choose the best one to do the trick.