This was previously mentioned, is the thermostat in backwards? There is also the question about the jiggle valve orientation that was just mentioned. I would check both of those points. I would also replace the temp gauge sender as was previously suggested to eliminate that variable.
Is the coolant in the overflow tank siphoning back into the radiator? If it isn't, it will be more difficult to get rid of any air trapped in the cooling system. A bad hose connecting the radiator and overflow tank, or a bad radiator cap, would stop the siphon action.
IIRC, one of my cars did what you are describing after some major cooling system work. I don't remember doing anything special to correct it. I just made sure the overflow tank had coolant, then I drove it around to get it warmed up (not hard driving, and it was not overheating during the drive). When I got back home, I shut it down, no idling. The idea is to push the air in the block to the radiator, and as the engine heats up, the air is forced out the radiator cap. When the engine cools, coolant is pulled back in.