Ok, so the tstat has the jiggle pin around 12:00 and I massaged the tstat before installing and it moved freely. Installed with the spring facing the engine. Took the rad cap off and hit it with some wd-40 and massaged it. everything seemed to be working as it should.
Let it run for about 20 mins. Never got hot. I was able to touch the engine just about anywhere but the exhaust and it was just warm.
Heater blew the same lukewarm air.
Like i mentioned before, Ive run cars with no thermostat and have never seen one run this cool.