Temp guage not reading correct??

Looks that way. Check the PN they gave you and see if it is correct for your application. I suspect (rock auto confirms) the same senders are used on a slant 6, 318, 340, and 360 (72 dart) Not to mention a slew of Fords!

One more possibility... You might have a failing ground. When you shorted the sender wire to ground did you short to the engine or to the battery or chassis?
We grounded to alltinator bolt..right next to sender pretty much..I have excessive ground I think..both back sides of motor to booster/ fire wall. And front frame chssis directly to battery neg...