Defiantly fix the gauge and bleed the coolant, but if the header is getting really hot it could be a clogged cat.
coolant temp sensors are about 10-15 bucks
Coolant bleeding
Jack the front of the car up
Take off radiator cap
Take a 2 liter pepsi bottle cut it in half and use some black electrical tape and wrap the bottle neck a little, or get a cooling funnel
Flip it around and place the bottle neck were the radiator cap was at. Pinch off over flow line if not using the funnel.
Now start filling it with coolant about half way
Remove bleeder screw
Close bleed screw after you get a nice even stream of coolant
Squeeze the upper, and lower lined and burp out the air
Add antifreeze until you over fill the rad by a quart
Turn the heat on full blast
Start the engine and let the engine run after 3-10 minutes the thermostat will open and suck in the excess antifreeze (ambient temp affects time)
Fill it again but with about a half of quart.
Let it run until no more bubbles come out. Squeeze hosed time to time.
Replace cap, unclamp overflow hose and then shut off the engine, fill over flow 1/2 to 3/4
Coolant funnel (best to have)
