Thank you very much for the help.
I found it and changed it out. Of all things this wasn't easy either because I had already changed the thermostat and didn't want to remove housing. Anyway, finding it was difficult because it looks like there are 3 sensors in te area. One I started to unbolt. It first had a top bolt on it then there was a bigger one below it. This was all rusted and when I started to turn it the metal got wet. So I realized that was a bad idea.
I think it's still leaking a bit. I'm worried I cracked sone of the rusty area. Maybe I can smear it with permatex gasket sealant?
Anyway I finally figured out how to reach the awkwardly placed temp sender by removing a stubborn wire plugged into the alternator.
Unbolting it was kind of difficult because there was a lot of rust around it. Putting the new one in was even more difficult. I couldn't get the new one to thread which definitely led to a lot of hair pulling. It seems the hol on mine was machined slightly smaller than the sensor bolt since where the old one had been threaded was thinner. Anyway so I barely bolted in the old one again and I'm not one to quit so I got the new one in after trying it all again. It didn't go in all the way and some of the threads are still visible. Maybe this is why the Ford guys made the excuses. But the spindle is longer on the new one and so probably reaches better into the coolant. Anyway the temperature needle still bounces. I'm hoping the computer will compensate eventually or maybe I need to tighten it in more. But gently, don't want to strip the threads. Anyway, except for cleaning the transfer case out I better give the explorer a rest till the summer. It's just kinda old and rusty and my brother really did the once over on it. Gotta be careful with all the carrosian and rust. It's odd because it was in near perfect condition when I left it to him nearly 2 years ago. Anyway, 4x4 will be next. Think I'll just live with the bouncing temp needle. Don't want to mess with those other sensors.