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'85 GT engine cooling problems

Hey all, I hope you can help me. 
A few months ago, my radiator hose blew.  At the time, I noticed that the 
coolant temperature gauge was extrememly high, maybe 7/8 of the way up. 
Well, I think that was a symptom of a very weird problem.  Since that time, 
the engine has never been as cool as it used to run.  When I bought it used,
it ran *extremely* cool, even at highway speeds the temp gauge would stay
about 1/4 up, and the oil temp gauge never exceeded 130 Celsius. 
Now, the coolant doesn't seem to stabilize at any particular temperature.  It 
also doesn't seem to have any pattern of heating/cooling.  For example, I can
be running down the highway at 60 or 70 mph and the temp gauge stays about 
2/5 of the way up.  Not as good as before, but acceptable.  Then, suddenly, it 
will begin climbing rapidly.  Sometimes it goes up a little, then stabilizes,
sometimes it nearly hits the H and stays up there.  At these times, I've had 
the oil temp run up to > 150 Celsius.  It doesn't stay for any particular 
period of time, but eventually the gauge will drop back below 1/2, and soon 
after the oil temp will return to 130 or so.  I would think that, at highway 
speeds, the coolant should stabilize at some temperature.  Well, mine doesn't 
stabilize even when running on cruise control on flat territory (Florida) for 
any length of time.
I've tried removing the thermostat, but the problem still persisted.  I also
think that the car is burning/leaking oil far more than it used to, but I 
haven't had time to check that out.  About a year ago I flushed the coolant 
system and replace with Prestone Longlife, and the car has had lots of fresh
mix since then (like when the radiator hose blew).  I cannot find any leaking
vacuum hoses (although I've also recently had problems starting the car), and
I have no clue as to what can be wrong.                                       

Please, any ideas?
Thanks immensely,