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What year?
If it's a '95, it has a cable operated valve on the heater hoses. Look behind the intake manifold...make sure it moves when you slide the temp control to HOT.
If it's '96-98...then you have some other problem.
The temp fluctuation is probably a loose connection at the sender...it's just a spade clip...and that gauge is pretty inaccurate.
- Brian
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