Thanks for all the feedback guys, sorry I have been silent been waiting on parts!
So here is the lowdown....ALL FIXED!!!
The heating issue was 100% a craked crappy thermostat housing....What a pain to get off and on again...Anyway 5 hours and some scraped knuckles later, I replaced the whole plastic assembly that houses the thermostat and also the water pump while I was in there. Just took it for a good run and no overheating whatsoever, for sure it was a piece of plastic interfearing with the thermostat.

Piece of the broken pipe inside the thermostat housing

 

Congrats on getting her back on the road. I had to do the same repair on my 2004 X350 over the weekend. It has 137K miles on it and it's owner had died and been sitting for a while. I bought it this past November and slowly working out the gremlins.

 

Wow Gregory! Sounds exactly like mine, bought it off of a widdow! Mine only has 108k Kilometers (67000 miles).

 

Congrats Sterling!

 

Congratulations, that's the kind of issues that are hard to discover since there is no code or fault to guide you or telling you where to start. I was working on mine this past weekend and "I was able to fix" the not heating issue.

More than a fix based on facts was a lucky shot. Looks like I had a blocked heat core as @Jacuar mentioned, so I was replacing the hoses (upper and lower radiator hoses), I choose to flush the system instead of just refill it. I did the distilled water flush, following a post here at the forum BUT while I was running the car on the first round of the flushing process, mostly just distilled water into the system, and running the car for just 2 minutes (The post says you should run the car for about 10 minutes) the temperature of the vehicle increased really quick up to 230F in just matter of a few seconds! That made one of the heat core hoses (The one attached to a rubber hose by clip) blow out, I mean a saw all the water and vapor coming out of the bonnet, MY HEART WAS BEATING faster than 200 MPH when I saw that. I was lucky it was just driving in the block, it happened just arriving home.

Since the plain water boil with a lower heat degree, that produced the high pressure and heat into the system. So I wouldn't recommend driving the car for "a few minutes" with just mid plain distilled water during the flushing process. That's dangerous for the car and I was monitoring the temperature the whole time!

So looks like that blast of pressure unclogged the heat core, because as soon as I finished with the flushing and refill process, the heat was working again fro first time in a really long time. (Years)

Also the temperature of the engine has been lower and instead of running around 208/210F has been running steadily around 199/203F

Thanks guys for the tips and tricks in this post.

J.A.G.