There is a motor grounding strap that goes from the left hand motor mount to the frame rail. This ground is VITAL for the alternator and ignition system to operate correctly. Likely that some of your grounding issues are because the motor grounding strap is NOT connected.
IMO it's almost certain that the dash temperature gauge issue is GROUND or VOLTAGE related. Remember that the sensor is driven by voltage. IF the alternator voltage is low this will make the dash temperature read HIGH. Since the Mustang's alternator is grounded via the motor, EXPECT problems if the motor grounding strap is not connected.
Next review the grounds around the radiator core support. Are the CLEAN and tight? What about the battery and batter cables? Are they CLEAN and tight?