Re: water pressure.
I have the 2000 year version of the same engine. While I didn't normally have any overheating issues, I did have the same concerns about my telltale being very weak at idle. After discussing with others on this forum, I learned that this was because certain Mercs (200EFI included) have th telltale piped off of the thermostat discharge. I'm not sure why they did it this way, but it certainly made for a weak discharge since hardly anything came out unless the thermostats were open. Based on instructions from some of the more seasoned members of this forum, I was able to re-pipe my tell tale so that it now comes off of the main line from the exhaust manifold. Now I get a very strong stream even at idle.
This may not solve your overheating issue, if you truly are overheating, but it will give you a much better telltale which will tell you that your water pump is working well. You need to check the sensor or the temperature of the water when the alarm goes off. Keep in mind that the thermostats are probably 142 degree stats and the discharge water may be at least that hot under normal operation.
Also, I do have a water pressure gauge and I believe it usually runs about 4 to 6 lbs at idle.
Hope this helps you some.
Jim