The heater core return on the 88 is on the passenger side coolant tube in front of the rear wheel.
The setup that sco77 described works well and eliminates the sometimes problematic elbows that connect the waterlog to the LIM and water pump housing.
Using the stock 3800 thermostat housing is not a problem. After installing the drivetrain and hooking everything up, get the cooling system wet by leaving the front cap off and the thermostat housing uninstalled.
Fill the system through the t-stat housing HOSE until the coolant runs out of the front cap.
Install front cap.
Fill block through t-stat hole in LIM.
When full, install t-stat and housing.
Finish filling t-stat hose and install on t-stat housing.
Fill coolant return tank to cold line.
Start and warm engine.
Bleed air through fitting on t-stat housing. Repeat air bleed until engine is warmed to temp.
Turn off, allow to cool.
Refill coolant tank if needed.
Repeat the bleed proceedure until you are satisfied the system is completely bled.
[This message has been edited by olejoedad (edited 02-22-2014).]