OK, my take, you don't want a T between thermostat housing and water pump. That is by pass for circulation before thermostat opens. You want the return hose from heater and oil cooler to use the T at the cast block to bottom of radiator. What have you done to engine. Head gaskets leaking is main cause for overheating on those engines. Maybe you have had that apart, I don't know. But an easy test for head gasket leakage into coolant is to disconnect water pump belt, fill radiator to the very top, start engine and if coolant rises right away you have a combustion leak. Don't wait looking for bubbles as they may be trapped way back in engine . Of course coolant will rise in just a short time like one minute from normal heat so test has to be quick. Rev engine up and down to get maximum pressure in cylinders.
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