New rad, new water pump, new chrysler T-stat, new hoses, new fluid with a flush, new temp sensor and she is still bouncing off the red zone so I figure that the clutch fan is the only thing I haven't replaced. Installed a new NAPA clutch this morning and no difference!
Things I have noticed;
-the Chrysler T-stat says 195*F but actually opens at 205*F when tested on in water on the stove top, but thought it was close enough, maybe not.
-after installing the new fan clutch it was stiff to turn while cold but once the engine is up to operating temp and after a 10 min drive the fan is VERY easy to spin, no resistance (I thought it was suppose to get stiffer as the temp goes up)

 

next thing i would suggest is put a mechanical guage on it...or use a temp gun...I put 2 new temp sensors on a customers car...both were faulty and read hot on the guage. Bought a different brand and it worked like a charm.

 

I have a laser temp gun and it is reading about 200*F on the cast iron head right next to the T-stat and 225-230*F at the back of the head where the temp. sensor is. So I'm pretty sure the temp sensor is reading correctly. I'm thinking that my next move is go to Chrysler and order 6 T-stats, test them all on the stove top and keep the one that is closest to 195*F or try and find one of these calibrated T-stats.

 

Went with a 180F t-stat (Stant Superstat) in our '98 XJ. ScanGauge floats between 179F-186F and the heater is toasty.

 

thermostats prevent overcooling not overheating...your problem is probally elsewhere.