It could be in the valve body or the oil cooler. Mine had a problem with getting hot and by hot we were pegging the needle at 300. I took the lines off in various places and blew shop are backwards through the system. Found some little pieces of converter clutch material in the heat exchanger and oil cooler. That helped, but it was still running at 250. Pulled the VB out and found that the E shift valve was hanging up and not stroking all the way. Cleaned the valve and bore and now lately has been running about 120 degrees above ambient. So around 210 on the dash. Now remember, that the dash reads about 20 degrees higher than what the trans. temp. really is. I'd pull the VB out and see if any valves especially the E shift valve are hanging up or have any marks on them. They should slide freely in and out with no tapping on the table. Also when it's hot are the lines going in and coming out of the front cooler hot? If so, then we know that oil is flowing through it.