Based on the 2002 FSM from Sir Sams NOOB site the calibration on your temp gauge is:
Engine Temperature Normal up to about 110° C (230° F) fordiesel engines
Engine Temperature High about 112° C (233° F) for diesel engines], the gauge needle is moved into the center of the red warning zone on the gauge scale.
Engine Temperature Critical above about 115° C (239° F) for diesel engines], the gauge needle is moved to the high end of the red warning zone on the gauge scale.
If you can lay your hands on an infrared thermometer, possibly at a local mechanic, you can take actual readings at the tstat housing. Absent that based on looking at
http://www.greendieselengineering.com/f ... st/19.page and the above information it sounds like your temperature gauge is calibrated like the unflashed 2005 CRD gauge (e.g. the second picture which shows a 2005 CRD gauge calibrated for the gas engine). I say that based on the position of the degrees associated with engine temp high and critical. Going a bit further it appears the upper end of your operating range is 230F which is quite close to the GDE post that fuel reduction to prevent overheating starts at 235F.
All this is a rather long winded way of saying that assuming your engine's tstat is supposed to be fully open ca. 176F (probably true) like ours then the normal gauge position once the engine is fully warmed up should be 1 needle width or 1 tick left of dead center. If you are down about 1/4 you are running ca. 130F which is way too cool under any circumstances.
The

manual comment that anything between dead cold and hot is ok is quite true but totally meaningless or at least it conveys ZERO useful information, not unusual for any factory manual. Why the manual cannot provide the useful information of where the needle should sit at normal operating temp escapes me.