Real High Oil Temperatures on Maggied V
 

I was driving down the freeway way at normal speed (80F outside) when my oil temp warning goes off. I have done the grounding fix and prior to the maggie it worked great. I pulled off into a gas station and I could smell a distinct burning. I pulled the dipstick to check the oil level and smoke came out! The temperatures are sporadic, moving between 270-330F but always reading very high. I have a feeling the oil is actually getting this hot. What should I check first? I could not find any posts with similar issues.