Disconnect the wire from the sending unit and see if it stops jumping around. That will tell if the problem is in the wiring or sending unit. Make sure the wire terminal is not being grounded at the sending unit.

Just make sure you get a sending unit for a gauge not light. Aslo make sure the metal terminal ring on the wire is not touching any metal on the sending unit other than the terminal screw.

That's a good thought John, I wasn't thinking of after market gauges.

Hey guys!  Thanks for the help!  I replaced the gauage, rechecked the wiring and it appears to be reading correctly now.  I used my infrared temp gun and verified that the thermostat opens at @180 deg.  When this happens, the fan would immediately come on and the guage would register almost 190 to 200 deg and the fan would not turn off as the temp dropped, this was all while sitting still in my driveway.  So I adjusted the fan to come on later at about 200 deg and while sitting still the temp guage stays below 200 deg.  I will take it for a drive when I get home this afternoon.  I'm thinking that once the car gets moving and the air moves through the radiator, the temp will lower and the fan should turn off.  What are you thoughts on the changes?  Thanks again!