There are two coolant outlets on the inlet manifold. I'm guessing one goes to the heater, the other goes to the back of the plastic thermostat hosing. Then the heater return also goes to the back of the plastic thermostat housing along with the pump inlet?

Can someone confirm if this is correct? Would the larger of the two inlet manifold coolant outlets go to the heater or the back of the thermostat?
Also is this the best possible cooling set up? was thinking of going back to have the thermostat in the inlet manifold? If I did were would the second outlet on the inlet manifold go?
Sorry one more question... If the later gems cooling system is the best, are there different temp thermostats available?
As always all help is much appriciated.
Thanks,
Tom.