Tony,
I think you are correct. I have checked the oil when cold, it is visible in the resevoir and it is visible when hot also, but less is visible! I have been told that if you can see bubbles in the oil, then at least you can tell that it is circulating, and I can see bubbles.
I would have thought that when hot, very little oil should be visible in the resevoir? perhaps \i need to check the resevoir when hot and the engine still running? has anyone tried this?
Jim.