Again, thanks to Komeuppence, and again citing my build thread:
your thermostat orientation is correct with the bleed valve at the top, the sensor in the housing will not obstruct it from opening all the way.
http://www.mightyram50.net/vbulletin...ll=1#post26505
Should it be of any assistance to you, my build thread is http://www.mightyram50.net/vbulletin...G64-5-spd-D-50 . It's sort of a mess, but the info is in there...and the process of my learning these engines.