From the sounds of it, you covered all the basics first. Looking at the schematic in the FSM, it sounds plausible that it'd be the water control valve (ie. thermostat #2).
Looking at the diagram from FSM (attached below, the bottom image), the cylinder block is only cooled when both the thermostat and the water control valve is "open". So, since you changed the thermostat already, we can assume that's functional. We'll also assume no bubbles in the system (after a flush), nothing is leaking as you've changed gaskets and radiator cap, and the water pump is properly producing the proper amount of pressure to push fluid around.
So in the image below, lower diagram, there's a black path, white path, and a hash/striped path.
I'd believe the hash path is what you want to confirm is working properly - based on your description of driving, the engine is thoroughly warmed up and at operation temperature, it should be running in the hash path.
Your cylinder head may be cooling properly (your functional thermostat is working), but it could be that your water control valve is malfunctioning and/or not opening to allow fresh coolant to flow through and back to the radiator. So, if the WCV is not allowing flow, HOT coolant is just pooled up in the cylinder block collecting heat with now where to send it. And wherever the temperature sensor(s) is, it's picking up that the engine is not properly cooling and sending the signal to drive up the temperature gauge on the cluster.
Based on CourtesyParts.com, it's a rather inexpensive part $9 (
http://www.courtesyparts.com/21230-valv ... 98290.html), but it sounds like a lot of work to get to. FSM notes that the fuel pressure needs to be released, upper intake manifold removed, and injector "tube" needs to be removed... just to get to this $9 part
also... just double check that your temperature sensor is functioning properly too. Make sure there isn't any dust buildup on the connectors that might send a faulty signal.
