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What temperatures are you indicating? My 2000 996 normally sits on the "8" of 180 and will climb up slightly past the "0" of 180 when I sit in bumper-to-bumper traffic. This past weekend, when I flogged it at the track on a 99 degree day out in the desert, it approached the 250 mark.
Porsche changed the front bumper intakes in 2001, I believe, in order to get more air into the radiators to increase cooling. The earlier cars run warmer than the later cars. For example, my wife's 2007 Cayman never gets above 175.
Also, my engine has always smelled a little funny after running for a while. If I recall correctly, when I brought this up to my mechanic, I was told that I'm probably smelling the cosmoline that the factory puts all over the engine and tranny to help prevent corrosion.
For added peace of mind, you may want to open your oil filler cap and look inside. If you see no evidence of a yellowish-white colored sludge, which would indicate that water is mixing with the oil, you should be OK.
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