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I've heard it, don't know if I believe it. I think color may make a difference though, a lighter color such as aluminum on the headers for example might radiate more heat theoretically, but it may not be measurable.
I don't know about too much paint either but it would seem one would have to apply way too many coats to affect engine temp., however color does make a difference.
I had read in a Volkswagon magazine about the choice of engine color when painting an engine. I can't recall how it works excatly but according to their research black actually lets the engine run cooler while a lighter color makes the engine run warmer. These tests were done on air cooled engines so it might not even make a difference on a water cooled engine. Not painting an aluminum engine at all makes it run warmer than if one was to paint it black.
On a air cooled motorcycle engine, not only does it make the engine look better but black paint helpes it run cooler. But I'll stick with Ford blue on my Ford engines.
too much paint on the radiator is a problem. You don't want to stop the air flow through the radiator as it will cause overheating. I've never seen anyone try to heavily coat the radiator fins though...LOL.
The layers of paint on the engine shouldn't cause any heat problems. Most of the heat is removed from the cooling system, not from radiating from the engine. An air cooled engine might, but not a water cooled engine.