"You still want restriction to the intake or you're robbing flow though the block if you route it like that. My way doesn't rob flow from the block".
So I can't tell by your pictures but, are you feeding you intake through the upper port just below the tstat, and returning it into the small port in the pump?
I am assuming you have some kind of of control valve on those T's to your heater or how else would you keep the hot water from circulating through your heater all the time and why would you want to do that?
