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Gonna pull all the pipe work off and check for blockages I think. 

Bud Don't chuck the small block!  just work at it and you will get there.remove the thermostat and see if water circulates first as that is easy.

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The only experience I've had with these was a Mk1 Polo I once had.
 There was a bleeder for the coolant on the heater if I remember correctly, a small white screw in plug that you removed, filled the system until coolant appeared there, then put it back and topped up.
Only a thought.

Have you felt the pipes if they are all getting hot around the same temperature

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