I'm using a rheostat,
Hopefully, that means you have an adjustable fan controller, rather than just a rheostat in series with the fan!
My mechanic put the temp probe inside the hose between the thermostat and rad vs between the rad fins as Hayden instructs. Not sure if that is causing any issues.
Should be fine.
*Also, when I pulled over to check if the e/fan was on and blowing air through the rad it didn't seem to drop the temp.
There is enough inertia involved that it can take some time to see the results of the fan running. Plus, the temperature tends to rise at first when you pull over, since the coolant is moving slower but there is still a lot of heat in the engine block/head.
For a "stress test" (and to adjust the controller), I would suggest just letting it idle in your driveway. That way you can see when the fan comes on and off, and what the temp gauge is doing at the time. If you want, you could even monitor the temperature at various points with a "infrared" thermometer (although be warned that it likely won't be accurate when shooting the aluminum thermostat housing).
http://www.harborfreight.com/non-contact-pocket-thermometer-93983.htmlBut, blowing the fuse pretty clearly indicates there is a problem, so you need to deal with that. One possibility might be that the fuse clips in the original fuse holder aren't making a good connection to the fuse. BTDT, except w/headlights.