I just got past the problem that Mystic is having, exact same symptoms of rapidly rising temp without heater output, rapidly falling temp with burst of heat, and repeating.
Problem was water pump (this is a 4 cyl, by the way). My original pump was replaced as a precautionary measure while changing the timing belt, and the one they put in failed after 3 months. The impeller was free-spinning on the pump shaft. Pump was branded/warehoused under the Auto Value name. My mechanic happily replaced it with a new pump under warranty.
I want to thank everyone for participating in contour.org. I was randomly looking on the internet to solve this problem, and the information in your forums led me right to the water pump and back to my mechanic with good information. Thanks again!