Does this 318 sound healthy?

I resemble that remark!
You don't know much about the motor so investigate.
Check Post 4 1st. Set at 34 then see what your initial is. Might need some recurving.
Check your compression. I over cammed a low compression motor that sounded awesome and wouldn't get out of its own way back in the day.
As said what fan set up. Do you have a shroud? Timing can affect temps.
I'm sure other will give you some more ideas.
Check thing out and report back.
Video shows a shroud and the fan appears to be setting correctly within. I also see what appears to be more than enough radiator for a 318. "Drives great but warms up to around 230 in traffic. Will cool down to 180 when I'm able to step on it." This tells me it's not pulling enough air through the radiator if cools down to 180 once you start moving. Sounds like a fan related issue to me, or the gauge is reading incorrectly, which has personally happened to me.