Ok i installed the 75 degree t-stat, and i primed the lower coolant hose with some water as was mentioned above, bolted everything back together, took out the bleed screw, filled the coolant until pure coolant (no bubbles) came out of the bleed hole, screwed the bleed screw and coolant cap on, started the car, let it warm up (temp needle bouncing all over), then opened the bleed screw, took off the coolant cap, filled the reservoir to the rim, then revved the engine, coolant squirting out of the bleed screw, until the coolant level in the reservoir dropped to the cold mark, then closed the bleed screw, and replaced the coolant cap.
So then i took the car on a drive to the gas station and back (to get gas) and Lo and Behold! For verily i say unto you! the temperature needle never passeth the midway point but tarryeth in such a place to be between the 1/4 and 1/2 mark, and it stayeth there, and bounceth not, for the entire trip!!
So far, it looks like everything is working as it should! the needle is in the right place, consistent, and doesn't rise when the car is idling!!!
BUT, i am not going to get my hopes up, I will only be convinced that this problem is resolved if the car does not act up for several days, and after some long trips.
so stay tuned!! if this is indeed finally fixed, i will come back to this thread and make a "conclusions" post, outlining what the problem was, what i did to the car, and my theory as to how it got fixed.