Throttle resosponse seems to be choked, sluggish and overheats only w/thermostat

I found water in oil &oil in water due to broken timing chain tension/guides let chain eat a hole through water jacket.(KA24E) w/fuel. Inj. Not T.B.I.
W/over 200,000mi. At this point, still running great and getting aprox. 22 MPG. Problem started @ 1st start after repairs.I set timing @ spec.
(fresh Head & valve guides, Timing set, timing cover).
I also unintentionally caught the "S" hook to my drop light on the vac. Lines @ the E.G.R. Control valve solenoid unplugging them so they may have been reversed @ replacing both lines to both vac. Ports.I was reminded of the unexpected E.G.R. Solenoid vac. Line incident when I found a burnt/melted vac. Line from the bottom of B.P.R. Valve to a hardline feeding to or from intake manifold from E.G.R. Base, I've replaced vac. Line.
but the problem still persists, although removal of thermostat seems to relieve overheating.I also swapped out the oil pressure switch(dummy lite) for an actual oil P.S.I. Meter leaving single wire unplugged from orig. O.P. Switch,
if it means anything.