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If you aren't throwing codes, then it's probably not a problem.
People have varying results with the 160 t-stats. The simple fact of the matter is, the thermostat means nothing, only the engine temperature the ECM sees. Obviously those two are tied together, but in many situations, the vehicle runs quite a bit warmer than the thermostats rated temperature. Scanning the ECM is the way to go to see what the ECM sees for engine temp.
I'd like to see some back to back dyno tests on an injected motor to see what kind of effect engine temp has. Heat in the combustion chamber makes power, (see aluminum heads vs. iron) but hot intake charge costs power, so personally I think there's probably not much difference whichever way you go. Newer GM engines (and probably all other makers) are getting a lot of power out of engines running 195* plus, would be interesting to see if there was much difference changing the t-stat.
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Dorian is right, engine temp makes a big difference on some motors.
My 406 made 40 some plus horses when we had it on the dyno when it was nice and cool compared to running temp. /forums/images/graemlins/eek.gif
Like he said, the engine usually runs warmer than the t-stat settings, I have a 180 and mine runs 195 all day long, mechanical guage reading too.