other than the cam belts, seals, cam angles, water pump rebuild, alternator rebuild/check, clutch check/replacewhat else should be done? Is it smart to pull and permantely remove the two thermostats?
Why on earth would you want to remove a thermostat? They are there for a very good reason, leave them.
(To put a few more words of explanation around Brian's comment) The thermostat in a 512TR is not a simple 2-way (open or closed) valve -- it is a 3-way valve that closes one path and opens another. See the figure on page B76 in the 512TR WSM for a diagram of the two (separate) flow paths. If the thermostat is left out completely, coolant will just mostly recirculate within the engine and will overheat (i.e., the path the thermostat blocks when warm forces the coolant to flow thru the radiators).
