Ok so here's the things i figure i did wrong. 1 i dont remember for sure but i think i used teflon tape on the threads but easy fix. The second, is installing on the wrong side of the thermostat. The housing had the stat unit on the right side with another vacuum looking thing on the left (probably not stock). The new thermostat sender size was to big to fit in the old Tstat so i switched it over to the left side were it fit in just fine.
Would this be O.K. until i can get a new housing ( i assume once the Tstat opens the gauge will jump to temperature?)
The reason i didn't put it in the block in the first place was because i wasn't able to get the old one out.
And unfortunately i cant afford a decent gauge right now so just putting something in for a general reference.