Thanks guys. Well I think I have a conclusion, so here goes:

The old temp sensor may have been wacked out when I bought the car? I always read that it's temp (by the gauge inside) was at 185. After putting in the new sensor and seeing it ride normally around 210, I thought everything was hotter.

I NEVER hooked up the scanner before with the old temp sensor, So I can only assume that it was reading LOW inside the car, and that the car was really around 200-205 or so. Now with the new unit in the, the scanner still reads that same 200-205 operating temp, but my gauge inside would read about 11-13 degress higher than the PCM!

I thought the new sensor may have been wacky (Advance Auto Parts BWD Part #), so I bought another one (Delphi part #) and installed it. Well, I have the same difference in readings between the PCM and the gauge inside, about a 11-13 degree difference. So now I know it's not the sensor and it's a gauge thing. So I guess normal people just assume the gauge, and if it says 210 in the car, they think it's 210, when really it's 198 or so. I know it seems minor, but I was used to 185, so instead of my gauge reading lower, now it's higher, which from what it sounds is more normal!

I'm not sure If I tried the heater on full and then bleeding it, but Ill give it a shot. After a 30 mile drive last night and monitoring things, I think all the air is gone hopefully.

Now the last question or thought is : Is there a ways to calibrate the temp gauge inside the car with what the actual PCM is reading?? It shore would be nice to know it's the same, for what it's worth!! Anyone looked into this?

Thanks for the advice guys.