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Given the age of your car, I'm pretty certain your thermostat will be on the radiator, and the temperature readout wil be direct from the block.

The fact that the fan is cutting in suggests that your temperature gauge is reading correctly.

It sounds like it's running a little on the warm side; the fact that your fan is cutting in also implies that there is a satisfactory flow of coolant to the radiator.

So that brings us to the question of why it's running warm. If it weren't for the fact that the fan was running, I'd suggest a dodgy thermostat. You could always try changing it anyway for an 82 degree one.

Hmm... thinks it could be some sort of restriction to the flow in the system- not enough to stop water circulating, but enough to prevent proper cooling when stationary. Which I suppose could be a dodgy stat anyway. See para above
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