One thing that you need to check is that your water pump is turning the correct direction. The serpentine water pumps (because they are supposed to use the back side of the belt) turn the opposite direction as the old v-belt configuration. I would start at this point (get an older 302 water pump, because of the direction that you are turning the water pump). As to the heater line ports, the top port runs into the water neck on the thermostat, the second one runs in to the heater. The other side of the heater core runs into the port on the front-top side of the intake..... this port should be located in between the distributor and the water neck. If you still need more help reply send me a pm and I will take an exact picture of my setup to eliminate all questions if you still have any.
Adam
Here is an image for you
http://images.search.yahoo.com/images/view;_ylt=A0PDoYAfynZOMjUAoHGJzbkF;_ylu=X3oDMTBlMTQ4cGxyBHNlYwNzcgRzbGsDaW1n?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dford%2B302%2Bwindsor%26sado%3D1%26n%3D30%26ei%3Dutf-8%26fr%3Dyfp-t-701%26fr2%3Dsg-gac%26b%3D1%26tab%3Dorganic&w=640&h=480&imgurl=www.calgaryvolvoclub.com%2Fgallery%2Fd%2F9704-1%2FCH07.JPG&rurl=http%3A%2F%2Fwww.302w.com%2FForums%2Fforums%2Fthread%2F538.aspx&size=77.8+KB&name=Ford+Windsor+Forums+-+V8+Volvord&p=ford+302+windsor&oid=ce1677e1b6fb96aa9efbc7d882210277&fr2=sg-gac&fr=yfp-t-701&tt=Ford+Windsor+Forums+-+V8+Volvord&b=0&ni=28&no=8&tab=organic&sigr=11h5818q9&sigb=13sse03ti&sigi=11i1dccpr&.crumb=QZF1iHkLCZO