Here's a partial answer about your thermostat/coolant flow questions:
In the 7xx series at least, the heater valve is always open, except when running max A/C.
Might want to check that your tstat is the correct one. I would have thought that when fully opened, the block-off disc would completely close up the recirculation port-- isn't that what it's there for?
Greenbook shows the disc should move 8mm min. (fully open) at 216degF (for stock 87degC tstat).
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1985 744 gle d24t
1985 745 gle d24t
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