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Greg it’s quite common for these motors to get hot while under load. Like the death wobbles, an overheating TD can have many causes.
Fitting an inter cooler will help your issue a lot. I assume the viscous hub is working as it should? I haven’t heard of the mod you are talking about but I have a water rail fitted on mine which is tapped into the head at each cylinder then goes into the thermostat housing. Does it help. It probably does with water flow but I doubt it helps with making the thing run cooler.
But I think an inter cooler and a professional dyno tune would be my first port of call.