> In the Traxxas documentation, it states that the temperature should not
> exceed 260 degrees F.
On page 30 of the Revo manual it references 270F. I haven't found a
reference to 260F.
You can easily spike it over 270F in high speed runs, racing, etc, but
if it stays up there for long the engine will likely overheat and stop
running until it cools a bit. Overheating can also aggravate the
lubrication situation.
> With this said and done, does the Traxxas documenation mean the measured
> value unadjusted (100E) (100% - perfect heat conductor) or the adjusted
> value (77E)?
It means 270F actual temperature. I haven't used an IR meter so I
can't speak meaningfully on that topic.

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