wanted to post an update. We found the problem.
Apparently, there are two different positions to install a thermostat in a 350 Chevy for that year. This boat had both thermostat's installed for some reason (previous owner?)
One was installed in the T hose connection junction and the other in the intake manifold. The T location t-stat was bad and was replaced, and we removed the intake manifold unit as this is a non-LT1 engine.
Problem solved. No more limp mode, temp at 140-150F.
Except.......the MC dealer may have sold us a bad t-stat, as we skiied last night and our last set in the course, the temp gauge stayed around 100F. My buddy took out his rubber mallet to tap on the housing and the gauge moved to 160F. LOL!
Thanks everyone for your help. We'll remove this one and return it to the dealer, with the assumption it's sticking open.
On a better note, my dog is becoming quite the spotter. Sits in the Observer Seat, head slowly moving back and forth with a smile on his face. Officially part of the club now.
2Valve.