Is it possible to run a GEN VII 496 as a raw water cooled engine? I'm building one that will never see saltwater and it would be nice to set it up this way. All the 496's I've seen all use a heat exchanger.

Some of the Volvo 496s are raw water cooled so I would say yes.

Gen VII 496? That's the full MPEFI, fully computer (ECU) controlled engine isn't it?

The computer won't like the temperature variation, it will forever be chasing mixture rich / lean readings and amending your timing and base map on the fly. Running the closed system allows the engine to reach and maintain operating temp without fluctuation which in turn allows the computer to sit back, relax and run the engine with less to think about.

Sounds silly I bet, but modern ECU's run an open loop system into which temp feedback is usually a primary source of how the ECU chooses to run your motor for you.

My vote? Much as I don't like them, run the closed system. Or if you go carb'd you can do what you want and it'll go great!

You could go with the Volvo ECU that is programed for the open cooling.

A raw water system would still have a thermostat and controlled temps like the Volvo.
Not sure I see the correlation here as the ECU would still see maintained/controlled temps just as all the pre closed cooled systems.
Dave

correct. no difference at all between the two if configured properly.