I've got a 2.0XE in a Nova. My heater never produces "hot" air. When at blower speed 1, I get slightly warm air (never enough to warm up the car) and at speed 3, it actually seems colder.
The temp gauge sits at just above the blue mark (sometimes in the blue if it's really cold outside).
When sitting in traffic, the gauge goes up to half way and the fan kicks in shortly after.
I have replaced the sender, is my thermostat knackered? Where should the temp gauge needle normally sit under normal driving with air flowing over the engine/rad?