I had the same issue when I changed the temp gauge sender and coolant temp sensor on my duke. Originally I put them in with some anti seize, and they acted the same as yours. Went back to advance and got 2 new ones, cleaned the anti seize out the holes on the block, and reinstalled the new ones without anything on the threads. Seems to have worked out better, my temp gauge no longer pegs (although it still reads hot)...
Try cleaning the senders/switches off and cleaning the threads in the block, then reinstalling them. As stated, the sensors rely on metal on metal contact with the block for ground to work correctly. It may be a pain in the arse to change them again in the future, and you may need a small breaker bar to take them out, but its not that big of a deal. Its not often that they go bad...
Edit: Forgot to mention, bleed your cooling system. When you changed them, you may (and probably) have introduced air into the system.
[This message has been edited by Xerces_Blackthorne (edited 09-02-2008).]