Definitely getting too hot, Diablo. Any motor getting over 180-200 degree is gonna be in trouble, IMHO.
The coolest running oil I've tried is the Amsoil 100:1 synthetic, at about 90:1 ratio (one 8 ounce bottle to 5.5 gallons of gas) Every engine that I had which got hot using other oils now runs much better and never overheats, using the Amsoil. Maybe its just me, or maybe I am getting lucky, but it seemed to definitely improve things. . As well, Jason S. said they did back-back tests with Amsoil 50:1 series 2000 and the 100:1 synthetic, and the 100:1 was notieceably cooler, by about 25-30 degrees.
As for cowl baffling, all the baffling in the world will do absolutely no good if there is not a low pressure area for the heated air to dump into. I ahve not seen your friends setup, but you might want to check to see if he has a good 1/2" tall lip on the front of the air exit from the cowl, and about 8-10" of cear space behind the opening so that the air can flow easily out of the cowl. On my planes, I also make a relief in front of the LG plate, so that there is a back and down angle from the firewall to the gear. Anything to get the air down and out of the cowl will help. also, sealing the top of the cowl so that no air gets bhind the motor plate will make sure that ALL the air goes over those cylinders. i use a piece of .010" aluminum sheet that goes across the cowl, and angles forward and upward, to seal the air into the front of the cowl and force it over the fins.
All the 'ducting" in the world does no good, though, if the air does not come out of the cowl. This is the area I would concentrate on the most, and switching to Amsoil 100:1 synthetic can not be a bad thing, either.
Hope this helps, and please keep us all informed.