Correct in both counts Steve! To low a thermostat can cause low mpg, and it was 195 from the factory. The engine should run around 190-220 degress. It' not "running hot" until it tops 240 or so. Modern engines, even the 4.0L, run closer to 220 in the summer and 230 is even normal on hot days in warmer climates. Not much room between normal and running hot, which is more like 250 for newer, 16 psi systems! Yours more likely has a 13 psi radiator cap. -- Frank Swygert Publisher, "American Independent Magazine" (AIM) For all AMC enthusiasts http://farna.home.att.net/AIM.html (free download available!)