I can't remember ever having any radiator normally run below the fins. I also can't imagine a solid volume of water expanding that much and coming out the overflow.
You're not over heating which is good, at least not anywhere near the temp sender. I can't help but think you've got an air pocket somewhere. Even a small pocket of steam could account for a lot of expansion that vanishes at cool down.
My wife's 4cyl Saturn was vexing the living sh** out of me earlier this winter because I couldn't get the heater to put out anything but tepid air. The thermostat is in a bastard location so I paid the shop for that, no better. Finally searched Saturn threads and found it's a common problem and I needed to "burp" the system. Took a couple tries but finally got the air out and the heater will melt ice off the windshield again.
My sucessful attempt was cap off, topped full, fast idle for about 15 minutes after reaching full operating temp
A steep hill probably wouldn't hurt either