Bill, I don't want to just keep sending links, but the TR Register forum may also help if you search the threads.
This link is to a cooling problem and potential problems with the pump.
http://www.tr-register.co.uk/forums/index.php?/topic/36711-cooling/page-2?hl= water pump
Half waty through there is a comment about 'cavitation' and excess clearance. One perceived problem of the uprated pumps (if you've got the one with more vanes) is that the impellor thrashes around and causes cavitation. Don't know whether thats a real problem or not! The other occasional problem is that the impellor doesn't sit far enough back in the housing and therefore can't work efficiently.
The gauge on my 1966 car always reads high, but I also have a capiliary type guage which I trust more than the electric one. That rarely shows overheating.
Finally, if you haven't come accross it, there is a looseleaf book, published in the states which specifically deals with the early cars. There's the bedside reader and one called a Yank in Malvern. I have them both and found them helpful despite the cost!
Here's yet another link:
http://morganstuff.com/morgan-bedside-reader.htmlHope you get sorted!
Malcolm