[Excaliber]

That is the BEST setup Jim, and it will work perfectly. Some overflow tanks, like mine, simply vent or purge any excess from the tank out of the top through a vented cap. That overflow would then run all over the sides of the holding tank and spill out all around the engine compartment area and ground. I would much prefer a tank with a second hose from it's cap that directs any overflow straight to the ground.

It's important to NOT fill up your overflow tank when the system is cold because you need to leave room for expansion and additional filling of the overflow when the engine is hot.

Some folks say you should leave a little room, leave the water a little low, in the surge tank mounted on the motor. That way some expansion can occur within the engine without pushing the water out to the overflow tank.