Hey all,
I recently went through this and felt compelled to share.
I have seen many threads about the 95 Wrangler running hot. The previous owner of mine had smoked the head gasket (replaced before I bought it) and now the guage was reading around 230 degrees. I went to a friend who put in on a scope to read the electronic temp sensor, located at the Thermostat housing to compare. Turns out, there was a 30 degree difference between the electronic temperature sending unit (more accurate) and the resistance to ground temp sending unit (for the guage)
The fix:
$15.00 dollar temp sending unit.
Let the motor cool completely down--VERY IMPORTANT!!!!
the sensor is mounted at the rear of the head, drivers side. The wire pulls off, and a simple deep socket was able to remove. Be sure to have the new one ready to go in, as a bit of coolant will shoot up and out. Tighten back down, hook up the wire and now my guage is back to normal.
May not be the fix for everyone, but it is a great place to start.