Pete D: The temp doesn't rise instantly. The engine warms up first while I'm driving around. Soon after though (15 minutes or so) the temp guage goes right up to the 'L'.

Stingray: Hmmm...good point. It does run at normal temps at highway speeds. I assume because the radiator has more air passing over it (like Pete said). Could it be possible that the increased air flow over the radiator at highway speeds compensates for a water pump that's not working so well?

And yes, the temp does go down when the A/C is on. I think cuz the second fan kicks on. Pardon my ignorance, but is the cooling fan thermostat switch the same as the regular thermostat? One of the Ford service guys suggested that my thermostat may be sticking leading to the fluctations in temperature. What do you think?

Thanks again.