TW,
Yea, when I started my motor after its rebuild (with mild ported 250 head, 260 cam, total seal rings, etc) it ran hot too. It has a 165 t/stat and it ran in the 205 range. I would turn it off when it got to 220 as well. I did put in a larger "desert" radiator and that seemed to lower the temp to the 185-195 range. My only guess is that the engine is moving more air/fuel and the cooling system isn't designed to handle all that heat.
Personally I think the water temp should should be controlled by the t/stat and not the heat transfer area of the radiator. The larger 3 core radiator helped, but didn't totally solve the problem in my opinion. I'm still trying to get the temps down. The initial timing is 12*, and the balancer is deadnuts on. So I guess I don't have any suggestions to help (besides a larger radiator) but to let you know that others have the same issue. Keep us updated if you find a fix.
tanx,
Mugsy 8)