LakesOnly is correct, to get the most accurate temp, it should always be taken at the sump. In all my years of racing and high performance involvement, for a conventional mineral based oil, I would look into a cooler or a synthetic product if temp reaches the 250-260 range or above. A fully synthetic oil can hold up to extreme heat much better and it can also dissipate heat quicker during opperation. I for one, are not a fan of synthetic oils, my equipment doesn't need them and for how often I change the oil, the cost isn't justified for me, but that's just me. I have asked many people that use synthetic oils why they use them, even if the factory vehicle recommends a conventional oil. They usually can't give me an answer, it usually boils down to personal preference or I hear "my buddy usses it". Oil is very important, but like everything else in the engine as far as design, quality and strength, you have to ask yourself, "do I really need it".