I know I am bringing up an old thread, but since the search worked so well I didnt feel the need for a whole new thread.
The above is exactly whats happening to me, save for one thing. The factory gauge goes up to half way and stops, but the temp light starts flashing.
I popped the cap and released some pressure. Let it sit for about fifteen minutes than drove it home (interstate), the gauge and light behaved, but the gauge did seem to run on the cooler side.
Let it sit for an hour or so than started it up and let it run for about five minutes. Undid the cap and there was no popping of pressure, but, it looked like the coolant was boiling as it was steaming. Looked at the gauge, it was half way, and the temp light was flashing. Rad was hot, top hose was hot, bottom hose luke warm.
From what I have read, this should be resolved with a new cap/oring? Thanks for the confirmation in advance.