Re: Warm or cold Cooling?
I would suggest you find a Mercruiser dealer and order manual #31 for your engine. You have the dry-joint exhaust system and the difference between warm and cold is kind of hard to understand without the diagrams. Trust me, a SEA WATER = COLD WATER cooled is NOT how it's determined.
It's going to take the diagrams in the manual for you to fully understand it.
After trying to figure out a way to explain warm and cold, I ran into something that may be part of your overheat problem.
What type engine drain system do you have? 3Point, Air drain, 7 point????