Sounds to me like it might be more of a leak than repair/sealer can handle. It never hurts to try though. But if it doesn't work, you might have a little more cleanup to do when you pull the head. It may also be a cracked head as opposed to just a head gasket as well. keep thet in mind. A bad head gasket will cause an overtemp, not the other way around. As for the temp gauge, someone may have worked on it before. sounds like it's hooked up backwards. check it out. if the gauge is bad, it's probably cheaper and easier to get an aftermaket one.
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