Two things are happening, and they alternate. One is that the gauge will not even reach the first mark past 100* in the dial, and will stay there. The other, the gauge will oscillate between about 160 and 180* as in the video I attached.
I'm checking the FSM to see if i can find the ohm values for the coolant temp sensor - I'll come up with a way to test this.
EDIT:
get a 1 to 2 kohm resistor, put one end to ground and the other stick it into the temp sender connector (after unplugging it from the sensor), see if it does the same, if it doesnt then it's the sender or the harness at the sender (terminal, wire, crimping, corrosion,etc), if it does then it's the harness and/or circuit to the gauge or the gauge itself. At 1kohm should display about 190F at 2kohm should be about 150, idea is to have something that you know it wont vary at all and see if you still get the problem.
of course best to do this with the engine started so you get the vibrations. You work for Sony so most likely you're wiring savvy and probably understand what i meant above.
the other thing you can do is to measure the coolant sensor resistivity (ohm) with the engine running, see if it varies like the gauge does, if it is then it's the sender.
This is not a thermostat issue, it will not vary like that up/down 30F at a rate of 2 or 3 times/second.
EDIT2:
your oil pressure is also wrong unless the engine was cold.