The sensor is located between the water pump and the expansion tank,

What temperature should it settle at when its running well ?

Scooby

Mine runs at about 92 deg

The Zetec is generally regarded as quite a hot running engine. 92-98 is a good stable temperature, but it's quite happy to run up to 105 before the cooling fan cuts in. This does mean though that it's important to use anti-freeze/high temp additives in the cooling water.