Sounds like normal operating temps to me. The fans are programed to come on at a really high temp IMHO. For my 96LT4 the stock settings were:
Fan 1 on (Low MPH) 104 C = 219 F
Fan 1 on (High MPH) 109 C = 228 F
Fan 2 on (Low MPH) 109 C = 228 F
Fan 2 on (High MPH) 113 C = 235 F
The fans can also be commanded to come on due to oil temps. The settings are kinda high but not as bad as the coolant temps.
Fan 1 on, oil temp (low RPM) 132 C = 269 F
Fan 1 on, oil temp (high RPM) 127 C = 260 F
Fan 2 on, oil temp (low RPM) 136 C = 276 F
Fan 2 on, oil temp (high RPM) 130 C = 266 F
These can be lowered with re-programming of the computer. The sensor in the water pump hsg controls the input to the PCM, which in turn displays the temp to the digital guage. This sensor typically reads a bit cooler. With the reverse cooling of the LTx motors the thermostat is the two way bypass to allow cool water in and hot water out of the engine. Water that doesn't enter the engine gets recycled back through the radiator, there for the sensor in the WP will read a bit cooler.
The analog guage is controlled by a sensor in the head, should be between #6 and #8 spark plugs. Its got a single wire to the sensor. The analog guage is not as accurate, plus the location tends to make it read higher.
In the old days before computer controls on cars you could turn the heater on to help reduce the coolant temp. With the computer controls though its just the opposite, turn the A/C on. The computer reads this as a higher load on the engine and commands both fans to run.
One other thing ... I do this at least annually ... take the front shroud off the radiator and clean all the leaves, pebbles, feathers, plastic, ect. out of the shroud. With these cars being bottom breathers you would not believe the stuff that gets sucked up.
