OK, here's what I found.
I put the thermostat back in.
Riding with "it's the gauge thats wrong" head on, I let it go into the red, it stops there, sits at the lower part of the red area. Got the gun out, the bottom of the rad is 47c, top at the cap, 97c, other side at the top 52c.bottom 42c
Head on the chain side 87c, lower down 82c. the exhaust side is up around 98c right behind the header pipe. I gave it some stick on the way back, temp gauge rock steady, in the red!. The fan isn't coming on, I checked the temp right at the sender, about 52c. Certainly doesn't feel like it's overheating in any way. I also had to adjust the pilot jet air screw and the tickover speed when it was "up to temp"..
So gents, do you think I'm looking at a duff sender or gauge?. It would seem so. If that is the case I will be a very happy chappie.
Now then, as this is the first time I've relaxed slightly riding it, it's very involving, goes well for a 350, a very different experience from a Morini.
Alan.