you have one coolant sensor on flange on front of head, one sensor on flange on side of head, make sure are hooked up, i have put new connectors on mine, make sure they dont have a short problem, stock had plastic electrical covers for them. doesnt sound like your problem tho, as i believe the one coming off front of head(flange) is for heat, and you dont indicate a over heating problem.
no, ive found the sensor on top/in reservoir can make light blink, while you have normal heat, and a correct tank level(reservoir). i take my connector off, take some of the good electrical spray(crc i think) and clean up contacts, try that, maybe a bad sensor.