I looks like it is coming from the water pump area.

Sounds like you've found the problem.

I think that I will need to go this route and replace the thermostat and do a full flush at the same time, might as well do it all at once. Is there a specific temperature theromstat that is better for this type of car? Or are they all the same.

The time that I overheated the temp indicator was approaching 220 but did not get that far before I pulled over, sat for a little and then I happened to have coolant in the car because of this issue and I put some in and it was fine after this. It is really weird but when I go the car I drove it from Scranton PA all the way down past Allentown PA which probably is 90+ miles and the temp display did not even get to the mid point. Maybe it was that trip where the problem started... Oh well, probably a simple fix, I do want to get the engine cleaned up and what not anyway so the new parts won't hurt!

I have a 180 degree thermostat. There are cooler range ones but I think 180 is the way to go. I live in Tucson and during the summer in 110 heat it never got over the halfway mark on the temp gauge and the fan only turned on when I had to sit in traffic.

My 280z did the same thing. I bought it in Phoenix and drove back down 120 miles or so and drove another 400 or so around Tucson and the surrounding areas before the coolant issue happened. It all really depends on how well it was maintained and how old it was.

Just take your time on the pump and the flush and don't be surprised if you see things come out such as rust and such.

Jan