Sparty, I had the same worries when I installed my first cooler. I removed #1 & #4 tappet cover(intake) and confirmed that fresh oil had made it to the cam. I then removed the return line from the cooler and took a couple stabs at the starter button(run switch off) and coated my floor in oil(haha). Re-attached line, started engine and looked through the open tappet holes to confirm that oil was splashing over the rocker assembly.
My cooler takes at least 20 minutes of riding before it becomes hot to the touch and it never gets as hot as the reservoir tank or the engine. For a few minutes of idling in the garage I would only expect it to rise from ambient(cold steel) to body temp. Terry makes a good product and the design is simple. When I first read your post the only things I could think of was that
a) Mike had installed a defective pump
b) Terry had supplied a plugged cooler
c) Sparty is being very cautious and has not run the motor for more than 5 minutes
Guessing from my own experience with new motors and Mike/Terry's products I'm pulling for "c". Just holdin' the good thought for ya, Sparty, that everything is working as intended