I didn't notice any mention of a thermostat replacement in this post, TXBill. I assume you replaced that as well? That's probably the first thing to check if you're running hot.
I had some engine cooling issues - running betwen 100 (C) and 105 on the interstate, sometimes approaching 110 - so I replaced the thermostat and now it hovers between about 88 and 92. This is in the Miami area, so it was pretty hot even in January and February.
'83 240D, 250k miles