I got it all back together now. I also swapped out the thermostat while I was at it. Wow, it was such a PITA project. The new water outlet did not seal properly to the steel line in the side of it so I had to take it out again and seal with RTV (the o-ring was fine...). Now that it is totally sealed, it took til the temp gauge was just below max for the thermostat to kick, I know I put it in right. I will have to see what happens the next time I drive it, I want it to cool fully and see if it does the same thing. For those of you who don't know, the water outlet is blocked by the PS pump, luckily it is east to remove. The thermostat however is at the top of the coolant pipe, below the header. It is really tough to get to especially if you have big hands like me. The thermostat can be replaced without removing the engine to transaxle brace, but it is recommended. It also involved taking off the FR wheel, eating a few rust chips and of course a coolant shower or two. I really hope I am truly done with this project.
And on another note, If you are doing a seafoam treatment DO NOT leave the partially full, open bottle on top of the engine. It creates a lot of smoke when it falls on hot headers.
PS: If anyone in the Buffalo area with an LD9 ever needs any cooling system work, hit me up. I am sure it will be easier the second time around.