ok where do the coolant lines go from the thermo housing...i know the one facing pass side fender goes to iac under throttle body but where does the one go pointing up toward hood...and somehow i have obd2 intake mani on obd1 motor if that makes a difference

 

I think you have them reversed. The one facing the hood should go to the fast idle valve underneath the throttle body, while the one facing the passenger side goes to the TB. I would call the latter one optional since it's purpose is to keep the TB from freezing shut in extremely cold temperatures if I'm not mistaken. You should be able to plug the nipple on the thermostat housing as well as the TB to bypass this if you want.

Google image search (OBD-II): http://members.***.net/po0pman/coolant_mod_diagram.jpg

The OBD-I thermostat housing is similar (one that goes to FITV goes straight up, no 90 degree bend like OBD-II)