340 running hot

The thermostat is way wrong. It should be a 195.
since it straightens out "at speed" either there is an airflow or a water flow issue assuming the timing ain't moderately or more retarded (my 85 318 is at 18 ported with 35 total set with the FBO $22 plate). Much more likely air flow. N9 is a cold racing plug but unrelated to it overheating and as said get a 195 in there.