Peter,
Have you checked that there are no air pockets in the cooling system?
I was told that all you have to do is fill the system plus the expansion tank to the very brink then start the car and let it warm up until normal operating temperature.
When the thermostat opens, if there is an air pocket the water will push it out and the expansion tank will self level.
Do you have a rubber hose on the expansion tank overflow pipe?
Bob Smith (Brisbane,Australia)
RHD,1967 early 250 SL, auto