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Jim, as far as I know there is not some other bypass hose or steam vent hose needed for a gen1 crate engine. I 'm leaning twoards thinking you have one or more traditional issues.
Timing set retarded due to wrong timing marker or method?
Defective thermostat, heat it up in water on stove with thermometer to check if opening @180*.
New radiator not large enough capacity? I have the Modine heat buster 4 core copper radiator I think it was called now cooling down my LS1. This multi-application radiator has an inlet under cap which I think some vehicles had a tee from a radiator hose to it,maybe your water pump requires this?? My LS1 uses it for steam venting,yours may need it for trapped air pockets. Also check that lower hose isn't collapsing.
Fan obviously can cause overheating at idle, if you think it's ok shut engine off when hot, clutch should be stiff.
Hope this helps some, I don't know every detail on every model.:secret:
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