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I'm not a mk1 guy, but you might also want to check the thermostat for proper operation if bleeding the coolant doesnt fix it. (the quick and dirty check is to pull the thermostat, and put it into a pot of water just off the boil (i think the thermostats are spec'ed for 185* but not sure, check the service manual). You should see the thermostat open at that point if it is functional.
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