I had the same problem as you did, scared the crap out of me. I found that i had replaced the negative ground cable and the chassis ground (which was an exposed section of the wire attached to the frame) was the ground to the chassis and the replacement cable had no provisions for a chassis ground. My lights would dim when i came to a stop and my oil and temp gauges read very high. The coolant was at (according to the gauge) 240* and when i'd slow down it'd go down to 180*. I put on a new chassis ground attached to the engine where the negative terminal ground was, and i also noticed my radiator was somewhat plugged restricting flow so i replaced that too. the temp never goes above the N on normal (damn ford gauges) and i haven't had any problems in standstill traffic either. I hope this info. may be of some help. Good luck, i hope you find it.
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'84 Mustang 5.0 T5, FMS aluminum radiator & 180* thermostat, 1 5/8 shortys/2.5" duals, '88 GT tail lights and wheels, Holley 4160 4 BBL, smog pump idler, more coming soon
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