1. The flat on the counterweight should be approximately parallel with the ground when cold.
2.Yes, it should tip until the flap rests against a small tab on the inside which should stop it from turning further.
3.??? Clockwise from the weight end is heat on (cold) and ccw is heat off (warm engine). The flap is what stops rotation in both directions.

Here's all I have for a picture:

http://rides.webshots.com/photo/2495723850023244788ATCiri



1952 1300 Canadian 1/2 ton restomod
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