[chopper]

Yes, the outlet at the top is for the heater.

Just out of curiosity, why did you plug the bypass connector instead of hooking it up to the fitting on the front of the intake manifold? While I'm certainly not an expert on FE cooling systems, it was my understanding that the bypass was designed into the system to allow for limited coolant flow through the engine before the thermostat opens up, to avoid formation of hot spots in the heads prior to the establishment of normal coolant flow at operating temperature. Why did you decide to shut off this flow?