Agreed, you need good flow out of the elbows to have adequate raw water flow through the heat exchanger to keep the coolant at the right temperature.
One question though. So you have a full closed cooling system, is this running off of the standard Cobra impeller in the upper gear housing?
Also, I'm wondering how they could have set it up with antifreeze in the manifolds in a full closed system. The standard OMC/Volvo manifold design has a water inlet on the bottom of the manifold front and rear. For you to have manifolds on the closed cooling circuit, there must be an inlet (bottom of manifold) and an exit (upper portion of manifold). To my knowledge, OMC or Volvo never had manifolds designed like that. Merc does, and you can set up a Merc with full closed cooling for that reason. If they are not set up this way, there will be hot spots in the manifold. In fact the hottest area will be where the manifold and elbow meet. Perhaps that is overheating the coolant as it is about to return to the heat exchanger. The coolant should exit the engine, then travel to the lower section of the manifold, then to the upper section of the manifold, and then back to the exchanger.
I also am not sure, if you are using a standard Cobra impeller in the upper gear housing, if this flows enough raw water to keep a full closed system cool enough, because now you have the extra heat load of the exhaust manifolds.
If you can post up a pic of your system, I am interested to see how they plumbed it.
Here's your exhaust system, if these are the manifolds you have, I think trying to use them in a full closed system, might be the cause of your problem with hot running.
For a comparison, look at how Merc sets up a full closed system, the manifolds have a low mounted inlet and a high mounted return.
I think the only correct way to set up a full closed system on an OMC or Volvo engine, is to somehow adopt Merc manifolds to it.
So a solution might be, just put the manifolds on the raw water side of the system, that is how every OMC or Volvo I have seen with closed cooling is set up, half system only.