I replaced the t-stat with a new 180 degree one and I did a coolant flush. That totally made the problem go away. I used Prestone 50/50 premixed coolant. I followed your ideas on this problem and it worked. Thanks!

'98 Contour Pacific Green(Modded) http://www.cardomain.com/ride/676416 FS:'98-00 Contour front bumper.Brand new unused (Non-SVT)