hey no worries. Yes, all the thermostats I've tried were installed correctly, thermo 'sensor' end down into the intake.
I just drained all the coolant, hooked up the garden hose and flushed the system both ways. Nothing came out as I expected. I checked the passages coming out of the front of the cylinder heads and both are clear. I decided to go back to the full flow Mr Gasket 180 tstat, and I drilled 3 small holes around the perimeter just for good measure. Topped it off and used the Lisle funnel when filling and idling/revving. I got as much air as I thought I would be coming out, so I put the rad cap on and went for a drive. This time the gauges reported 175-190 for the whole trip, no fluctuation, but the car was already up to temp when I left. I did note that temps go up by about 10 degrees when I open the water valve. I still don't understand why that would make a bit of difference. I reset the low speed fan to come on at 185 and the high speed to come on at 195. There were times, even when idling, that neither fan was running.
I'm letting it cool off and I'll go try again. I did verify the water pump is pumping...it's moving plenty of water across the top of the radiator, so I'm ruling that out. Seems like I've whittled the list down to the possibility of a seeping head gasket, but only time will tell. The combustion gas test isn;t showing gasses in the coolant (tested again today)...but I would be surprised if a freshly decked block with MLS gaskets and new heads would be leaking. Anything is possible I guess.
Thanks everyone for reading and contributing.