Running hot!

Yup, you need a shroud, I would try that first. A good rule of thumb is the blades need to be half in/half out of the shroud.

Well, my fan was not even in the shroud at all. I could remove the shroud without having to loosen anything else. I think with a 3" space it will be as you describe.

Also, I beleive I have a 160 thermostat, would I be better of with a 180 maybe?