Thanks Larry, JD and David.

As per Larry and JD, I drove the car up ramps when cold and let it come up to temp with the resivour cap removed. Some air bubbles did seem to come out. I replaced the resivour cap and drove it. Still heating up.

High rpm's are what bring the temperature down. You could drive all day long in 2nd.

Blowing into the resivour as I mentioned before is strange compared to other cars. On most cars the system will pressurize and you won't be able to blow any more air in. On this car when you blow in you hear a bubbling noise that seems to be coming from under the winshield washer res. I have an 88' 560SEL parts car that I tried this with and same thing. The air that you blow in some how passes thru the coolant and then is allowed to vent.

David, I'm not sure what you meant about the tubes shrinking. Do you mean the tubes internal to the radiator?

I'm thinking about changing the thremostat.