Still overheats after replacing water heater & thermo st

Did you try replacing the water pump?

I'm assuming you mean water pump, not water heater. Make sure there is no air in the system. I just had a similar problem with my vehicle. If you lost coolant from the block and cylinder, then installed thermostat, there may be air trapped in the system. I fixed mine by pouring coolant into the block through the heater hose (use a funnel) that connects to the water pump until it reached the thermostat opening. Install the thermostat, leave the radiator cap off and start up, waiting for the air to bubble out (burp). Once this happens you should be able to top off the coolant and put the cap back on. If it doesn't burp, and still overheats, consider drilling a tiny hole in the flat face of the thermostat, install with the hole at the 12 o'clock position and then try to burp it again. You'll allow the air to escape from the cylinder head, and you won't affect the operation of the vehicle other than it will run a little cooler and maybe take a little longer to produce heat on cold morning.

I have a 1988 Dodged Shadow with a 2.2liter-OK! I got the info late, now when I put in anti-freeze it still overheat but now the antifreeze is leaking out the exhaust. I'm guessing that my head gasket is blowed, so my question to someone please is am I on the right track and is it to hard for a non mechanic but mechanically incline person and advice would be very helpful please thank you

That's bad news, coolant in your exhaust. Think you are on the right track. Blown gasket at least and possibly a warped cylinder head. My advice, if you are mechanical and have the Haynes manual, remove the cylinder head yourself. Take it to a machine shop and have them check it and machine it if necessary. Have them do the valves while they're at it. Or just buy a refurbished cylinder head assembly (with valve parts installed). Follow the book and reinstall per instructions. Don't forget to change the oil. A little chunk with lots of self-satisfaction is better than a big chunk of money for an old car that may konk out on you anyway at any moment. Good luck, amigo. And I'm no mechanic - just like the challenge. This isn't beyond your abilities.