when installing the thermostat the sensor/spring side goes toward the engine block side.
When you replaced the hoses did you replace the bypss hose? it is a small hose connecting the waterpump and going to usually the block side of the thermostat housing.
what do the blades on the waterpump look like? are they worn off any? What did the coolant/water look like that you drained out? was it rusty looking? Was it rusty looking when you cleaned out the cooling system?
If you have alot of rust in the system you may have to run cooling system flush a couple times to get it cleaned out enough.
the freezing converter usually is because there is no coolant going through it, get the circulation part fixed and see if that fixes it.