azpete,
I don't think youtr temps are too high... I'm about the same. Around town empty I see 160... but it I an in stop and go traffic or at a drive through, they will climb to 200-220 real quick. If I'm loaded and pulling a hill, I've pegged my guage (Lake Powell boat ramp, as posted in another thread) but according to Clint at ATS in Denver, this temp sender in the line is measuring super heated fluid coming out of the torque converter and has not yet gone through the cooler... so the pan temps will be much lower.
We had a long conversation about what the transmission is doing and where the best place for temp guages are... his opinion was that it should be in the pan to really see where your fluid temps are pre-converter... . all the in-line sensor is doing is telling you that the transmission is working real hard.
Now... . my guage is in the line and the ramp at Powell is almost 1/2 mile long, about 9-10% grade and boat boat weights around 6500lbs, outside temps around 70-80 lately.
This past weekend when pulling out, I put the transmission in manual "1" instead of "D". The temps didn't rise over 240... ... whereas in "D" the guage will peg out... .
Hope this helps... . I'm still trying to make sense of it all. .
I also have the MagHytec DD pan.....