zero pressure cap back then, and yes, the hose is an overflow which won't overflow at normal operating temps if you don't overfill the rad - should be down a couple inches when warm, nearly down to the top of the fins when cold .... a 160 thermostat should work fine, a 180 if you use it regular in winter and have a heater - stats should be fully open at about the temp rating, you can check it in a pan of water on the stove with a kitchen thermometer
Bill