Thanks to all who gave me suggestions for my heat nor working. It did turn out 
to be an air bubble.  Though bleeding did nothing for it, the suggestion to 
constantly fill the overflow until full when the engine had completely cooled 
was the answer.  I did this for 4 days, after the first 3 there was always 
more air in the overflow but on the fourth day it stayed filled and now the 
heat works and the temp gauge stays steady at idle.  

Well that's the good news.  The bad new is my newly rebuilt 83.5 w/c has 
developed a knock. As John Muir put it, "an expensive noise".  The knock 
sounds like its coming from near the heads.  My mechanic says he will take a 
look at it.  It the engine is history I do not want him to rebuild it again.  
Can someone tell me of a good mail order company that offers rebuilds.  I see 
3 or 4 in the VW mags and they are all about the same price.  I would like to 
know who has the best rep/warranty.

On a lighter note, talk about close calls.  There's a narrow bridge here in 
Charlestown Township, PA on route 29 that can _barely_ fit 2 cars at once.  On 
Friday I crossed it at the same time another van did and he was a bit too far 
over.  WHACK!  Both our side view mirrors shattered into a million pieces, a 
pretty scary sound at a combined speed of 70 mph.  Well a quick trip to 
Bearoffs used parts yard and I had another mirror for $20.  Had to replace 
that one quickly as driving a Westy with no mirrors is not fun, you have to 
listen for the horns and watch for middle fingers as you attempt to change 
lanes...

Thanks,
Bryan