I have the same problem with my 1997 ford fiesta. The problem is fairly common with these cars. The problem lies with a part called the heating tap. It usually breaks and either jams on hot or cold. The part is located under the bonnet under the windscreen in the centre of the car in my model (i presume its similar with yours) You need to replace this part. It will have two hoses connected to it (hot and cold air intakes) and an electric cable attached also which is used to regulate the hot and cold flows. I am looking for this part also. It looks easy enough to fit as you just disconnect the cable (has plug type fitting so easy to do) and the hot and cold hoses (same as regular plumbing hoses with standard o-ring gasket). Once done stick in the new part in same way and off you go. If anyone knows where i can get this part please let me know,
I live in Dublin, Ireland.
Shane Tynan
January 2008