now, be gentle I am not technaically minded

so recently the water temp gauge (factory) has been moving around too much. once car getting warm, the temp gauge moves up normally. after a bit of a drive, the gauge then flutters between cold, and just below middle - normally always sits just under the middle even after a race/session at track.
at wakefield last sunday the gauge seemed to do it a lot more, more so sitting on cold!
after each race I noticed the thermo fan wasnt come on. one mate said it came on once that he remembers.
so the fuel also, plugs are black, seems to run through a lot more fuel than usual.
this leads me to believe...is the car constantly running in "cold mode" and dumping more fuel in - which could be a brokern thermostat?
if so, fairly simple process to fix?
or could it be a broken gauge sensor? if so, where is the water temp sensor?
what else potentially could it be?
to give you an idea, I have a 42mm a/m radiator and MX5mania type coolant reroute. coolant and spark plugs were only changed in august 2011 and have done 2 track days since.
and be gentle on me haha
Cheers,
Chris