Well, as I said, my car is almost up to working spot on now

. But since the engine swap, another problem has arrived.
On the original engine, the car as far as I could tell was overcooling according to a few people. This wasn't surprising considering that the car hadn't been used much over the last 3-4 years and that the stats tend to go weak. According to the gauge, it would stay at around 70-80 degrees on the motorway, and in town when coming to a halt, it would climb up to around 95 degrees where the fans would cut in, and the temperature would fall down to around 85 degrees.
Prior to the new engine being installed, a cambelt kit was installed, as was a clutch and I also took the opportunity to change the thermostat thinking the one in the engine could be weak. But I am wondering if this has been a mixed blessing.
If the heater is on completely full heat (i.e in the red) the car will stay at around 80-85 degrees on a run. If the heater is set to quite cold, the car will then sit at 90-93 degrees on a run, and if halfway, I can hear the vacuum pump clicking in out with the air either being warm or coldish when it comes out of the vents. This causes the temps to swing between 80-95 on a run

, with it being 80ish when the heat is coming out, and around 90 when there is cold air coming out (I assume this is down to the flow of water going into the matrix.
I know the amount of water in a matrix can change levels, but surely not to this degree. The cooling fans now kick in when the car is around near 100 degrees too :S.
What do you think is the cause of the strange issues? I'm tempted to try fitting a cooler thermostat to be honest, although I'm wondering if the radiator is at fault (It is still on the original rad), and I am thinking whether the cooler thermostat was masking this problems since I am wondering if the matrix is now a sort of surrogate radiator. What do you guys reckon?
Here the gauge markings for those unfamiliar with it:
