Break In Disaster????????

"1/8 inch above the C" is not anywhere near running hot. That's what the "H" is for :)

Thats what I was thinking. Maybe install a more modern temp gauge?
Use a "point n shoot" thermometer to verify temp.
Torqing and retorqing head gaskets isnt good
Hope its vc gaslets. Make sure mount holes and rails on vc are nice n flat.