Holden workshop manual for the early reds states that the oil light flickering at idle is normal. 
Standard Temp for the Holden reds over this way was pretty much 180F (82C). The higher flow Trident thermostats are good but if you are a bit worried about it heating up when you are in traffic etc maybe start off with a 160F or 170F. I am not sure what your maximum ambient temps get to but mid forties are not uncommon here in summer, so I run a high flow 160 in my vehicle (Land Rover with a Holden engine). The other thing that will help is to wire your electric fan so that it will also cut in when you have your foot on the brake, that way you will keep the temp down from the start when you are in traffic. 
 
Cheers, Mick.
				
			 
			
		 
			
				
			
				
			
			
				1974 S3 88 Holden 186.
1971 S2A 88
1971 S2A 109 6 cyl. tray back.
1964 S2A 88 "Starfire Four" engine!
1972 S3 88 x 2
1959 S2 88 ARN 111-014 
1959 S2 88 ARN 111-556 
1988 Perentie 110 FFR ARN 48-728 steering now  KLR PAS!
REMLR 88
1969 BSA Bantam B175
			
			
		 
	
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