Try changing your temp sensor before you get too worried. Does your upper rad hose heat up? Does your car blow hot air inside? When you've had the car running for a while, does your overflow reservoir cap hiss when you undo it? I highly doubt your car is running that cold.
If you thing it's running hot, make sure your waterpump is turning and not slipping on the belt, and maybe take the thermostat out all together. Check your fan clutch to see if it has any resistance. Your rad might be clogged, or your water pump might have broken it's fins.
If you change the sensor, and it's still screwing around, try picking up a gauge cluster from a wrecker, and swap out the whole cluster or just the gauge itself ( it's easier than you think).