Just put in a 350 crate motor.
New radiator, water pump, hoses and a 170 thermostat.
In traffic or in stop and go temp reads 150(yes i checked it with a thermometer
At 65 or above the engine gets up to 210.
I checked the fan clutch when cold i can only turn it a bout a quarter turn after the motor is fully warm it is about the same. Could this be the problem,too much fan at low rpm and not enougt at high speed?

When the fan clutch starts to wear out the temperatures you are seeing is what one would expect. The clutch looses its grip at higher temperatures and doesn't blow as much air... the engine gets warmer.

Also sounds like you may have thermostat problem.

The thermostat should close and let the engine reach at a minimum its rated temperature. In your case, the engine should heat up and then never get below 170.

But back to the fan clutch, you went to all the trouble to install a new engine and almost all new cooling system components... don't stop there... replace the fan clutch.

also see the previous long detailed thread on this subject

http://www.c3vr.com/vrforums/message_go.asp?MID=38758