So,--- mine comes from the pump, into the exhaust manifolds, out to the former water pump inlets, then out of the thermosat housing, and back to the exhaust manifolds and exits out there. It seems to work, so is this correct? I guess you could say that my system pre-heats the water before it enters the engine itself. I do not run a thermostat, and I adjust the water flow to keep the engine at 150-165 degrees.