I just recently got through flushing the crud outta my rad... looked about like yours when I started. Everything here is done with Heater on FULL HOT
I drained everything out I could, popping the lower rad hose.
Removed Tstat but replace housing
Replaced lower hose, removed upper hose.
put garden in Rad through upper hose opening and pointed upper hose to ground.
Started car with garden hose running on full blast.
let run until water from upper hose is clean and clear.
replace upper rad hose.
reinstall OLD tstat
Added rad flush.
Ran car with everything capped off like normal while cracking open the bleeder valve on top of the Tstat housig to bleed air out.
I was impatient and needed my car up and running tat evening to go to work so I only ran the car about 30 mins in my driveway with the flush in it.
let cool a bit, pop of lower rad hose and drain. be careful! the fluid is hot!!! as me how little room there is to jerk my hand outta the hot water down there...
replace lower hose, remove upper hose and Tstat, but reinstall tstat housing...
Yep, again, garden hose in the upper rad hose opening on fully and start car.
let run about 15-20 mins making sure that the water coming out of the upper rad hose is clear.
pop off lower hose again, and reinstall upper hose.
replace Tstat and NEW housing gasket
fill rad with one jug of straight non diluted coolant of your choice. I used green coolant as I HATE Dex-Crap...
top off with distilled water.
start car and bleed/add water as needed.
Now Im not saying that is the be all end all method, its just what I did 3 weeks ago or so. My coolant is still a nice happy bright green, I saw all sorts of solids and crap get flushed out of the system, and with the new Tstat (I used a factory 195deg one... Previous Owner had a 160 in it...) my car gets up to temp and at least to me runs better. Im sure it runs the same, but we all like to think that the things we do make our cars run better. And realistically with tat 160 Tstat in my car I doubt it was getting to the propper temp...