1. is this normal for an engine that is not broke in yet?(less than 5 hours).
Absolutely not.
2.running lean. (brand new 1409 eb did not help)
If it was lean enough to cause that much heat it would have seized.
3. bad sending unit? (will check intake temp with temp meter)
That would be my first move. Use an infrared temp gun and shoot the body of temp sensor in the intake manifold.
4.normal for full fresh water cooled system.(warm raw water)
No.
Look for an air leak before the raw water pump: a loose hose clamp, a strainer gasket leak, etc. I had to make an o-ring to seal the cover o that strainer, which cuased overheating on mine. I assume the rubber impeller is in good shape?
Jeff
"...reality is not nearly as lovely as the world of Liberal Land. No wonder so many people want to go there." - Tom Sowell