Rainman I believe you would be very close to the mark on how the system works. This is why you would not really want to put the temp sensor inline before the cooler as you would be reading oil temp of oil that has been worked and heated. By reading the Sump Oil Temp you are measuring the oil temp of the oil before it goes into the system again and gets reheated/reworked.
This is why some people put in larger sump pans to try and disapaite the heat within sump longer so that you can have the system use even cooler oil.
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