Volvo 280 outdrive overheating

[maxe40]

I have a Tiara Pursuit 1982 with a 350 engine , the new thing is the outdrive is getting hot on idle/ or runig at 1500 rpm,water sims to flow good but after 10 minutes of runnig I can't touch the upper outdrive , engine stays between 140-160 F.
The upper drive could be bad ?

 

[gcboat]

Re: Volvo 280 outdrive overheating

Hope this doesn't come off as a really stupid answer but are the fluid levels correct? Is the proper fluid in the unit?