RE: Overheating
The "radiator" cap is at the high point in the system, so it serves as the bleeder valve. Did you start the engine with the cap off and continue topping it off while the trapped air bubbles out? Will probably see a big drop when the pump (engine) first starts and a second when the thermostat opens. Should also confirm the expansion tank is filled to the "cold"/"hot" line as appropriate.
No heat at the heater core after the air is out and the thermostat is confirmed to be opening can be a symptom of a bad water pump, control valve, or blocked hose.
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