Do NOT get a cooler t-stat.
FWIW, that's the temp range your engine was designed to run at, but the 180 t-stat should have brought it down 10 degrees. What kind of fan are you using? Is the shroud in good shape? If it's got a fan clutch, what kind of shape is it in?
Fixing the heater core would help, but shouldn't be necessary to bring the temp down. Also, factory gauges suck, if that's what you're using. You really sould confirm the temp with a quality gauge before getting too concerned.
Take care,
~Chris
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