upgrade a/c compressor pictures

If you have holes (other then a small air bleed) in the thermostat, you are defeating the purpose of the Thermostat. In my opinion a 160 stat is too cold. 180 minimum, preferable a 195, if you do not have too high compression. The purpose of the bypass hose is to allow water to circulate through the engine, when the tstat is closed (BYPASSING the radiator) to keep hot spots from forming in the engine. If the bypass hose is in the way, you could use the heater hose hookups, without a water valve in the hoses.