there isnt an analogue oil gauge, i think you mean the coolant temp right? if so the symptoms you describe can be casued by a wire short to earth, or a faulty temp sensor.
since you dont mention what car it is I'll have to list all possible sensors it might be

1.6-1.8 8v engines will have the sensor in the flange on the front of the head, either a large black 2 pin or a small black single pin. On the carbed 1.0-1.3 engine the sensor is in the flange on the side of the head, and on the 16v its screwed directly into the side of the head, single pin close to the coolant flange.
Either way it has a red/yellow wire, so check the wire(s) and make sure its plugged in.
If it looks ok unplug it, if the gauge doesnt read at all its the sensor. If it still shoots to full the wire is shorted somewhere, or the dash itself is faulty.