1995 Hatchback Overheating Issue

Ok my hatchback has been running fine other than a few fast idle issues that I need to get straightened out but a week or so ago I was going down the interstate and noticed my temp gauge was sitting alot higher than it normally does ( it normally stays between the bottom mark and the little temperature sign). So I pulled off and it was a tad low on water and my fan wasnt running so I topped it off and straight wired the fan to see if that would help, It didnt change anything then when I got home I hooked the fan back up properly and and let it run in my driveway and the fan would kick on when the gauge would get about halfway and then it was running pretty well nice and cool ( not as cool as it used to but still below halfway. Then the other night I was driving up a four lane road and it started to show hot again and when me and my friend stopped I noticed when I would give it a little gas it would peg the temp gauge and when I let it idle it would come down some. Other than the gauge showing hot it has no other obvious sign of overheating. Any idea if it needs a thermostat or a tempature sending unit or what? I suppose I could find the adapter I need and hook my manual gauge up and actually see if it is overheating
Here is a video of what it is doing any advise would be greatly appreciated.
http://www.youtube.com/watch?v=0KT7vH4GB8c
Here is a video of what it is doing any advise would be greatly appreciated.
http://www.youtube.com/watch?v=0KT7vH4GB8c