I'm just getting back to this post. I re-read through and I know you're a mechanic which I'm far from, but I have to wonder if you don't have air trapped in the block somewhere. I found they are not the best to get air out of, but what I do if to fill without the T stat or the hosing in place. I have in the past, remove the pump belt and turned the pump by hand to help get water moving. Does this do anything, not sure, but can't hurt. Once the water is right up in the T stat hole, then put the stat back in and install the housing and rad hose. Fill the rad and start the motor for a short time, checking the flow, no cap on Rad. Is this correct, I don't know, but I've never had an issue with overheating as you describe. I have a Stant 195* in mine and it runs around 190 on a hot day. The only time I've seen it higher was last summer on the way back from the Mustang show in Dearborn Mi, when I got stuck at the border for a 1/2 hr. Revving the motor, pissing off those around me, got the temp back down below 200. Had to do that a couple of times. Once moving again, back to normal.
As for headers, I don't have them on this car, but the 72 Q I had, the floor got soo hot, it would almost melt your shoes, no, there was no insulation.