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From experience the DO88 radiator does not seal very well around the rad supports. I used some expanding crack filler foam from Home Depot with a lot of success.
That doesn't really explain those kind of temperature issues, 240 for water temp is pretty extreme. I'd look at faulty [new] thermostat, install issue, blocked hose/rad, something is pretty wrong.
Two other things to check are the fan, and that all the undertrays are intact and in good shape?
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