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The temp sender should be located in the thermostat housing which is on the cylinder head near to where the gearbox meets the engine. It will have a two wire plug on it, make sure the engine is cold and release any pressure in the cooling system by undoing the coolant filler cap, then re-tighten the cap; this will reduce the amount of coolant lost.
'Jumping' could be caused by many things (plugs, leads, coil-pack, EGR valve if fitted), you can either replace them by trial and error, or book the car in to your local Ford dealer who should charge about an hours labour for investigation, plus the cost of replacing any parts necessary.
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