I may have misread your original post. Somehow I got the idea that your gauge registered way hot all the time. If you do indeed get nothing....Rick could be right about the teflon tape. However, I've used teflon tape and still had the gauge work correctly.
The test to see if the sender is grounded would be to select Ohms on the multimeter. Put one lead on the head of the sender and the other on the intake. If you get no resistance, you've got ground. If it indicates an open circuit...well Rick would be right that the teflon tape caused you to lose ground. If you've got that sender on the intake, then you can remove it without draining the radiator down. In the head, you've got to drain the radiator, otherwise coolant gushes out.
You're getting the correct amount of voltage for that green wire.