The car stays cold unless I turn the temperature control to cold. If I turn the **** to hot the needle will drop all the way back to C. I have heat but its just a little warm. Sounds like the thermostat is bad? Stuck open? If I put the air to cold the needle comes up a little bit, maybe 1/4 way. Does it seem like a bad thermostat?
This may sound like a stupid question but in a B20B motor is the thermostat located in the top hose or the bottom? I have read about the B20Vtec motor has it on the bottom but nothing about the non-vtec motor. Also do I get a low temperature thermostat, like 170 or is the 180 or 195 just as good?

 

Bottom, the same place every D and B thermostat is.

 

It's in the...thermostat housing, on the water pipe.