Yea! The header/intake situation was even more frtustrating than what we've been discussing. It took several attempts to get things ground down enough. I had to grind the heater plate off too. I think that's still touching the headers. That will probably cause me issues later.
So; you're thinking the water is flowing from the thermostat housing to the intake and back to the water pump.
You're right about these forums. They save my butt all the time.