I would think if it is a cracked head you would have bubbles in the radiator as the engine would be putting compression (air) into the cooling system. Possibly the water pump isnt circulating along with a bad temp gauge (guessing). Does the temp gauge move at all? Stuck thermostat...with a bad temp gauge. Would be an oddity but..... I dont think the 206 engines had problems with cracked head as the larger ones did.
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