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You're right, of curse. Just because the temp gauge needle goes to the HOT peg and stays there doesn't mean the engine is actually running hot. Every Volvo temp gauge I've tried ran hot. I have a 'spare' aftermarket temp gauge I can just screw into the head and hang under the dash until I get a feeling for what the engine is actually doing.
I see JC Whitney has a radiator cap with a built-in temp gauge. One of those might be handy as a way to double-check the accuracy of the dash gauge.
The Volvo gauge isn't all that hard to recalibrate. I'll need to know how far off it is by comparing its reading to the other gauge, then I can adjust the air chember diameter so it coincides with it.
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