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The temps are high but at this point a good quality syntetic will be able to protect the engine up to those temps. Like someone mentioned the car goes into limp mode when it sees the temp go past 310 so you won't blow the engine.
The larger issue with this though is long term durability. With such a tight engine bay I wonder just how long those turbo's will last or how all the heat will effect hoses, gaskets etc. And when those turbo's finally blow you'll probably have to pull the motor in order to change them just like the B5 S4's. That turns into a job with probably 15 hours of labor (maybe more?) plus the cost of the turbo's...ouch!
This is one of the reasons, the other being price, that I may end up with a 128
Mike
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