Hi, maybe the water been boiling off? When you checked the water pump did you check its adhesion to the shaft, they have a tendancy when over heated loose grip on the shaft, hold the pulley drive and the impeller in seperate hands and twist, if its solid its good. I have a temp problem on my k-jet, I don't run a thermostat in the system, have done a full rebuild of all wearables ie rings, seals, bearings, gaskets, still no change, but shes happy and never blows off, fan comes on at top of gauge scale ok and off again, fitted new heater matrix- no change, altered the timing - no change, in my experience as previously had a 87 scirroco with similar tendancies, as its happy I'll live with it. Do worry on a hot day if I get stuck in traffic though, open the windows and put blower on full heat for a while just to make sure it stays on the gauge!!

Will do some temp readings with a gauge off the block soon to see what the actual temp is compared to the gauge on the dash, may even get a twin fan rad and wire one fan off the ignition then put a thermo back in the system, sorry if this has gone on but thought i'd share my findings, hope you sort it.
