[burnin oil]

Should be standard rotaion. Your timing is probably off some. It sounds almost like you are doing a break in run and over heating is pretty common. Timing and mixture off combined with no airflow with electric fans (usually not enough movement of air) and what you saw is pretty normal. Double check the radiator doesn't have an air bubble, reset timing, and fuel mixture then take it for a ride. If the cooling issue still is around then dig in deeper. If the power out put of your motor is realistic then there is a good chance that your cooling system is marginal at best. There is alot of head generated.

I run my temp sensor in the intake but only because the sensor wouldn't fit my new heads. Once may new gauges get installed it is going back into the head. Infact I just put the sensor in this weekend.