The location of the leaking hose under the thermostat housing makes me very 
suspicious of what you are describing. This hose is difficult to access which 
makes it very likely that it is original to the car. Replacing this hose will 
be next on my list. 

Sent from my iPhone

> On Jan 6, 2015, at 10:11 PM, David Bruckmann <bruckma...@transcontinental.ca> 
> wrote:
> 
> The early OM61x engines have an air bleed bolt over the thermostat. If you 
> have a leak and air is getting trapped in the space above the thermostat, it 
> could be preventing the thermo from opening properly.
> 
> 
>> On 1/7/15, Dimitri wrote:
>> 
>> Yes, I replaced tstat with a new MB unit from the classic center. It made no 
>> difference. 
>> There is a short hose under the tstat housing which leaks. After the car is 
>> driven and comes to normal operating temp, this hose will leak coolant. I'm 
>> theorizing that once the coolant cools and de pressurizes, air is drawn into 
>> this leaking coolant hose creating air bubbles. 
>> This might be the problem.
>> If the bolts were bottomed out, wouldn't the engine lose compression as the 
>> head is not tight to the block? It started in frigid temps this am. Makes me 
>> wonder.
>> As far as the bolts go, did we come to the conclusion that it would be 
>> alright to remove one at a time, tap the hole and re-torque?

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