Awesome!
Use whatever thermostat is called for in the car, assuming everything else is stock. A lower temp thermostat won't necessarily run the engine cooler once it gets hot (once mine got to 195 and opened, it pretty much stayed between 195-205 the whole time so the tstat just stayed open). If the air outside is cold enough, it's possible that a lower tstat will keep the engine a bit cooler than the engine is designed to run, but in reality it just means it opens sooner, which will make it harder for the engine to get up to it's correct operating temp when starting cold. That can mess a bit with your cold idle and mixture. Remember, this is old school computer control, it uses things like the engine temp to determine when to turn things on and off, so if it thinks the engine is too cold , it adjusts things to make it get up to its correct operating temp. It's smart for 1986...works pretty well, but well, 1986. Think of Space Invaders and Frogger being the best games of that time...
Also, while overheating an engine is very bad, engines like running as hot as they safely can. Hot is good, as long as it's not overheating!
Look for a thermostat that has a little hole at the top to allow the air bubbles to bleed past it, if you do end up with air sucked into the system in the future, that bleed hole will allow the air bubble to move past the thermostat and get the hot coolant up against it to allow it to open. The air gets pushed back into the radiator, and the high point there is the cap. When the pressure builds, it pushes the air out into the overflow tank first, then it sucks coolant in when it cools off. Helps keep the air out of the block, and you can tell by looking at the "cold" level in the tank if you're losing coolant. That and the puddle under the car. Most good thermostats will have that bleed hole.
I'm glad you're getting it figured out!
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