Initial startup cooling system troubles

Made the first start of my newly rebuilt 340. The engine fired right up and I was starting to go through the break-in procedure when I had to stop. I've got two problems, maybe related.

1. The temperature gauge rose steadily to hot (I'm looking at the stock dashboard gauge.)

2. The radiator top tank filled with the brown, foamy solution shown in the picture.

I did get the timing set to 28 degrees at the 2500 rpm I was using for break-in.

The car is AT so it's got the trans cooler lines.

I used straight, purified water for this initial start.

No signs of external coolant leaks.

The radiator face was evenly warm with the engine running.

I pressure tested the new radiator before installation and it held a steady 15 to 16 lbs of pressure for several minutes so I thought it was okay. Everything in the cooling system was replaced: Radiator, fan, fan clutch, heater core, all hoses, water pump and thermostat.

Any ideas would be appreciated.

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