Hey WOE,
Just got directed to this thread from your question regarding stripping of the transom assy over in the Merc I/O section...
First up, really nice job on the hull restoration. And that engine looks better than new.
However (there is always a 'however', ah), I have concerns regarding your closed cooling system. The heat exchanger you're using was never design for cooling capacity that included closed cooling the exhaust manifold. The original closed cooling for the in-line 4 and 6 GM engines was just the block and head. The manifold remained seawater cooled. Even the latest design of 3.0litre engine closed cooling still doesn't cool the manifold. You may need to consider putting a 4" heat exchanger from a later model 470 on.
Cheers,
Chris.....