It looks to me that your fan is inside the shroud. This could have the effect of throwing air from the center of the fan out the edge of the fan, but into the shroud, stalling flow-thru. If you fan has a frame all around than would prevent that, it is really only pulling from the diameter of the fan. Move the fan back a half inch.

Just because you have a shroud, doesn't mean it isn't your problem.

 

Since the shroud was made to have the fan inside would you recommend I flatten the shroud so it is almost against the rad fins (lil gap so no direct heat transfer) and then mount my new Spal on the outside?

 

I would try to leave the gap as is, but get the fan on the back side of the metal.

Think of it like you are building a vacuum cleaner.

 

I added a new pic so you can see I have maybe an inch or so of space but not enough to mount the existing fan (Spal will prob be the same) on the outside.

Options:

1) use a fan gasket or pads to move the fan out a little (but then it wont be flush against the fins) so it will stick out of the shroud more

2) remove the shroud and cut it so that the edges are not under the shroud (maybe 1/2-1in increase in diameter)....this will make the shroud unreturnable

3) Maybe the pulley wheel on my waterpump is replaceable with something that doesnt stick out so far

http://sitesearch.cjponyparts.com/se...er_pump_pulley

4) somehow rig a Dyson vaccum in there for max cooling power!!!