So I just bout a 1992 Celcia GT-Four that was originally from Japan however, I actually bought it and I'm driving it in Nassau Bahamas, because this is such a climate change for the car, it seems to be running hot and having some problems with the aircontioning. On the underside of the hood is what I would call insulation of some kind, that I assume was for keeping the engine warm in the winter in Japan, I'm wondering if this is a safty hazard and if I should remove it now that the car has been in such a warm place.

The reason I'm wondering this is when I turn the AC on the idle begins to fluctuate between 200 and 900 RPM where as with the AC off it idles steadily at 1500 RPM. I'm sure the engine is running hot eventhough the temp gage isn't showing it, and the car is shutting off the AC to keep itself running. Would removing the insulation solve the problem or should I take it to a mechanic as well?