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i'm willing to bet you still have air in your coolant. it took me over 30 mins of bleeding to get most of the air out (and i still think there were bubbles in there). by you stating your heater works intermittently tells me you still have air in your system.
what is your method of bleeding?
Fill at the throttle body. Put the no spill funnel on the reservoir, let the car warm up, keep coolant in the funnel until it stops when the thermostat opens, rev engine at about the first mark past 2k for about 15 minutes, add coolant to funnel if necessary while it cools off.
I'm doing this as we speak, itll be fine today but when I drive it to work next, the temp needle will creep up a little on a steep bridge I have to cross. Then each day will progressively get worse.
I'll double check the thermostat and the bypass hose when I have a chance to dismantle it again. The hose seemed fine when I put it back on. Like over said before, it's a 50/50 chance that I got the thermostat upside down. I put the new one in on the same orientation as the old but was not aware of the jiggle thing.
I'd also like to thank everyone for responding. I've never had this good of help asking forums for any of my other cars.