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3.7l mercruiser 1988 165hp 224cid 4 cyl --- blowing smoke out of pcv vent to flame arrestor

HEY all if the thermostat was installed upside down on this particular setup would that be the reason the rings gave way.....this schematic shows the pointed end going up in the manifold and i believe ours in pointing down and the round part up in the manifold.........gauge shows 125 degrees when warm and underway at all times but have never ever seen any antifreeze in the overflow container.........but the day we started smoking we took it up river bout idk 20 miles and bout 34mph constant and then got our smoke but the gauge still showed 125 but that valve cover sure was hotttt to the touch.......maybe the a/f aint getting cooled by the heat exchanger properly and we burned it up.......idk but i will take it off tomorrow and find out which way it is pointing.....
 
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