Thank you for the well informed responses. It was a $4 thermometer, but still. Interesting that it is alcohol in there, not mercury. In school science class we used to play w/ a blob of mercury, letting it roll around in out hands. I'm still alive. Like Roger said, I only use my dial thermometer for mixing up D76 at around 130 degrees, where I have a 10 degree flexibility. Sending the thing back won't work as it would probably cost what the thermometer is worth. I'll either buy another one or mark this one at 68 degrees based on the readings from the other two thermometers, which actually do agree w/ each other. I went through some bad film developing until I figured out what the problem was.
Which brings me to another topic, just to get off topic for a moment. If someone is just setting out in film developing, make sure you get all your gradient cylinders from the same plastic. I bought mine in different places, and their differences in construction drive me batty. While my fixer and stop bath cool down very quickly due to the thin walls of their construction, my more thickly constructed developer gradient takes a lot longer to cool down. I always have to remember to grab the first two gradients out of the bath before they get way too cold, while the developer slowly cools down. It would have been simpler to have them made out of the same stuff. I run into the same problem in the darkroom when doing 8x10 prints, as two of my trays are thin walled and the others are thick walled. Setting them in an ice or cold water bath means things cool down at different times. In hindsight, it would have been wiser to have bought all of them together as I did the larger trays. Fortunately I don't need spot on temperatures for the darkroom printing.