so update -
I have now installed a new hose kit as well as the 180deg stat.
before the work i flushed the system using Thoro Flush Irontite and spent quite some time making sure every hose/pipe ran clean.
Once all the fitting was done i filled the system as per the RAVE - the bleeding procedure seamed much easier this time as the 'waterfall' sound from the heater core is now gone. I have only driven now for short distances and have found the following:
1 - the aux fans are no longer coming on
2 - there seams to be no excessive pressure in the hoses
3 - there is a definite change in the hose temps - it is obvious when the TSTat opens/closes
Keep in mind through all of this the dash guage had never shown over half - mind you that guage is almost useless.
All this to say I am pretty sure the culprit was the new stat that I installed after the rebuild - it was most likely faulty out of the box.
I will post again after I have driven it for a while.

thanks all

 

Curious if you used just the Irontite flush by itself or if you used that with the ceramic sealer and all weather sealer? Thank you posting your resolution as I agree very few threads post the final outcome.