The 'bleed procedure' I outlined above, I forgot to mention that each time you need to open the bleed valve on the driver's side upper corner of your radiator too bleed air out of the radiator too.
Bleed your cooling system and take it for a drive!
And if your temp sender is on the engine block, then you're golden - that's where it's supposed to be!
Stock location of temp sender (Note that I've replaced the temp sender with a petcock that allows me to drain the top-half of the cooling system for thermostat & water pump replacements, etc.):
Correct location for temp sender in engine block (visible just above pipe plug in water pump, behind the alternator bracket):
