Dave, from the new information you've given the board it sounds more like you have an electrical fault.
If the coolant doesn't need topping up regularly, and also the oil level remains the same and isn't mixed with coolant it doesn't sound like a head gasket problem.
The fan on most Uno's should cut in at about the half way mark, about 90 degrees centigrade on my mk 1.0 FIRE. Normal running temperature should be 80 degrees, or somewhere between 70 - 90 degrees (1/3 to 1/2 way) unless it is very cold. Mine rarely goes much above the halfway mark except on very hot days, but even then the fan kicks in and doesn't allow the engine to go much beyond this.
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The temperature gague does peculiar things. Once warm, the guage tends to show above "normal" reading but (but not up into the red) and when I use the breaks the temp. gague flicks down to normal again. THEN when I switch the engine off the temp. gague zooms all the way round clockwise and remains pointing straight down!
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From this information you need to check whether the engine is actually overheating or if you are getting faulty readings. It sounds to me that your engine is fine and it's the readings that are fault.
The fact that you say when you use the brakes it affects the temperature reading almost certainly suggests an earth problem in the car or in the dashboard. Plus, when you switch the engine off and the gauge shoots to the right instead of the left shows an earth problem or that you are still getting a live feed to the dashboard.
It's worth checking the battery cables again (both ends - also the one that goes into the back of the fusebox), plus the engine earth strap and the connections to the alternator.
Check the ignition switch wiring. The switch that bolts to the ignition key housing can fail and give weird electrical problems. Does wiggling the key with the electrics on make any difference?
I'd also check the push in wiring loom connections at the back of the fuse box.
Lastly I'd check the connections to the instrument pod. If it is only the temperature gauge that is behaving badly then it's possible that the gauge itself might be faulty.
But as you mentioned in your first post, if ALL the electrics cut out except the engine this suggests that there is a supply/ earth problem to the dashboard/ rest of the cars electrics. It almost certainly sounds like a loose connection or earth fault.
Let us know how you get on and if you manage to locate the fault!
Chas