My 340 is running hot I think.. I need a sanity check.

Greetings,
I've finally got to the point where I have my GTS on the road and now working out the bugs.
One of the more persistent issues is temperature with the 340. I thought I had it licked but It's still acting funny. When I go for a ride the Stewart Warner temp gauge says 185 and the factory temp gauge points straight up and reads 1/3 of the sweet spot, the gauges read normal but the engine seems hot and I hear the coolant burping around. I have no over flow bottle so the tube goes from the neck to under the car. Today I was leaving a trail of coolant drops as I was coming up the driveway.

I can't barley touch the rad even after it's sat for a while.
Top radiator hose has pressure lower isn't collapsed (at least when I look at it)
When its cold it starts right up. after a drive and the temp heats up it doesn't want to start.

Rebuilt engine 69 340 (It's a mild stock build)
Reconditioned crank and rods, .40 over, stock 340 "X" heads, Comp XE275 cam, Performer RPM 340/360 (non-EGR), Holley Avenger 670 w/ e-choke carb, Stock HP manifolds, stock valve train, MSD Billet Distributor w/6A
Compression: 10.5:1
Timing: initial 20 with 35 total
Plugs: are Gapped at.040
Idle: cold 800 rpm warm 500 rpm
T stat: 160 with 1/8th drill
Fan: factory 7 blade with viscous clutch.
Coolant: 50/50 mixture Tap water/collant

What am I missing?
The t-stat is too cold. the t-stat is wide open, coolant flow is high and not getting cooled in radiator.