temp gauge runs off the black 2 pin sensor on the front of the block, check the right plug is connected as well, its the one with a red/yellow wire. the light could have been caused by the faulty sensor, or it might be down to the level sensor in the tank. check the coolant first

If the level is ok, pull the plug and bridge the pins with a short length of wire. if flashing stops the level sensor is bust, if not its a wiring or temp sensor fault.