Sorry I wasn't trying to come across as an ass. I appreciate you trying to help, I just couldn't decipher exactly what things meant.
I'll try to explain myself a little better...
There are two pieces to the thermostat housing. One is more of a male fitting, which protrudes into the female fitting. The female portion actually contains the thermostat. Now does the o-ring go inside the female fitting? Or does it go around the male fitting, where the two parts meet (this is what I meant by the outside)?
