Electronic Thermostat - constantly on and off

[usz999]

Recently moved electronic thermostat to other side of the wall (needed space on the wall for a picture!). It is now in a hallway on the main floor (near the door to the basement). It was previously located in the living room(right above the return air vents (2 of them).

The furnace runs and then stops at desired temp. The temp on the thermostat "hovers" at that temp for about 2 minutes and then drops by 1 degree (the furnace then starts again). This was not happening before. Any suggestions on how to fix this problem (my thermostat has a 1 degree range that is not adjustable)

[Hube]

Is there a "draft" (cool air current) caused by being to close to the door opening?
Is the interior wall cavity insulated around the T stat?. Any cold air within this cavity can greatly effect the settings.

[usz999]

I'm not sure if there is a draft (I don't feel anything). Is there a good way to check for a draft in the area. The interior wall is not insulated. I've done some reasearch on the net and read that I should caulk the hole where the wires for the thermostat come through or put some cardboard around the thermostat to deflect the draft. I've tried the cardboard trick and it's not helping.

My main concern is that I'm going to destroy my furnace with it cycling on and off so frequently. What do you think?

Thanks for your reply!!!