Might it help if you drilled a small "bypass" hole in the thermostat? Seems to me that if the thermostat is located any distance from the heat producing parts of the engine, there will be a slug of cold water that hasn't been heated right behind the thermostat and it won't open until that slug has gotten up to engine temp. Once the thermostat opens, all the hot water in the engine will rush into the radiator and cold water from the radiator will rush into the engine all the way to the thermostat which will promptly close. Then the whole cycle will repeat itself. Having a small bypass hole in the thermostat will allow a small amount of water to circulate and the thermostat will open sooner possibly eliminating that kind of cycling. Make sense??