I agree 40 seems hi. Could just be the different gauge... Most guys I have talked to run around 18. As for the temp gauge, I don't think of it as absolute temp, but relative. I know what it SAYS I run normally, so I know when I'm running way hot.
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Start worrying if it doesn't go up when the motor's working hard."
That's kinda what I was thinking too. I'd have to ride it a while longer to see where it finally settles, as my ride was only about a half hour-45 min.