On 97+, the PCM drives the gauges, so they use only the single sensor in the tstat housing. On earlier models, the gauge was driven by a separate sender in the back of the head.
I'd inspect and clean the power and ground connections under the hood, and have a look at the CTS connection and wiring. Look for corrosion, loose connections, damaged wires, etc.
I'd also test the CTS. The resistance table for the CTS is posted on here if you search a bit.