"There was a peice of white cream colored plastic that was broke into two peices - I am not sure I got it all out,some may have been floating around the system somewhere."
Need to flush to be sure. Yes, the white colored plastic was the impeller which broke (usually the white ones are good but it can break too).
"Is there some type of valve in the crossover? One that may allow water to short cycle until the car is up to temp to decrease the time it takes to get warm?"
I don't think so. The thermostat performs that function. Make sure you did not install the thermostat in the wrong direction.
http://www.autozone.com/servlet/UiBroker?ForwardPage=/az/cds/en_us/0900823d/80/1b/c8/7d/0900823d801bc87d.jsp
" I blocked the pipe up at the hose clamp on the left side of the thermostat housing."
This may be a problem too.
Edit. This might help you understand the cooling system a little better.
http://auto.howstuffworks.com/cooling-system2.htm