thanks mike. As far as the water goes it isnt leaking in from the firewall, or thereabout, it's actually(or so it seems) coming UP from under the pass seat. I guess I wasnt really clear about that. It is not in the front of the car, but under the seat and behind it. I just towelled it up and there was a good puddles worth, but none of the rest of the car is wet at all. I washed it this afternoon, thats the reason for any water.

I will try getting a thermostat tomorrow and keep it posted as to the results.
Also, I just went out and felt both sides of the housing, and the side with the block was def a good bit hotter than the return side. Looks like the thermostat could save me here.