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Motor has lots of water flow. Temperature gauge is half way up. Fine until you get on it for awhile and then temp goes up. Wonder if this is normal. Should I replace the thermostats with washers. I replaced the thermostats already thinking they were the problem. But it made no difference.
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Water pressure guage.. what kinda pressure are you actually getting? I had the same issue put a water pump kit in it and cleared it all up

Gasket blown out of the water pump maybe...or...base gasket under the motor?? totally guessing here lol.

If the motor is a 2.4XR4 on a drag mid with 1 piece adaptor plate I believe there are some cooling mods that have to be done.
I think you need to reduce the size of the dumps inside the plate

Motors is a 2.5, has all new Drag large tube water pump.
The pressure gauge is approximately 5 lbs.
When both water dumps open there is lots of pressure.

5lbs at WFO ?

1) Fill the big dump holes in the one piece adaptor and redrill them th 15/64"

2) Replace the thermostats with 1/16" fender washers.

3) Install diverters under the heads.

4) Does it still have a poppit installed?

I think Mitch is on to something :O

The XR4 is a 2.4L am I wrong?
regardless it is my understanding that any fishing type steel bore motor will require some adaptor plate cooling mods to run on a one piece place.

...............YES it still has a poppit installed. Water dumps out one side only and then both sides when it opens.

The XR4 is a 2.4L am I wrong?
You are likely correct. Dryland was surprised when they rebuilt it that it was a 2.5. I got the motor as a basket case.