I agree with Beemernut, proper bleeding is very important. when I got my M54B25 used, I basically overhaul the cooling system, changing many parts and service the radiator, my temp gauge is always slightly below middle even in reasonably long idling. And I use Mercedes coolant.
IMHO, engine cooling is a system ,when some parts begin to fail or not performing up to the mark, it will affect other components and affect the overall performance.
Just my 2 cents.