Comments:
1. GDE recommends a 195F tstat and I believe the export 2007 and later KJ CRDs have that temp tstat
2. The 2005/06 KJ CRD OEM tstat is 176F (maybe 180F). See lengthy discussions at
http://www.greendieselengineering.com/f ... st/19.page and
viewtopic.php?f=5&t=50940 3. The 2005/06 KJ CRD normal operating temp base is controlled by the tstat. With the OEM tstat depending on a variety of factors some find their vehicle operates at a steady 176/180F and others a bit higher which is part of the reason GDE recommends a higher temp tstat to improve operating temp and combustion.
4. The stock tstat functions as designed but its biggest design flaw is that it

is a sealed unit and the second biggest flaw is that it tends to progressively fail, way too soon, by opening, at least it doesn't fail closed, earlier and earlier beginning somewhere in the 40-50K range. That progressive failure seems to finally reach the point where the regular, not under extra load, engine operating temp is on the order of 135F.
5. The housing of the OEM tstat provides the "piping" requried to direct coolant flow during warm up away from the radiator and during operation to the "top" of the radiator and the overflow tank on the firewall. Hence one needs to at least keep the OEM housing to maintain that flow regime.
6. Work arounds to the sealed unit problem are either a) kap's reman of the unit so it can be operated as a housing that can be opened to replace a failed tstat (IMHO the ideal solution) or b) keep the housing and install an inline tstat.
7. The inline option only creates a blockage in the radiator hose when it is closed which is no different than the OEM tstat although I suppose having 2 open tstats in the system (OEM semi failed but fully open and inline) could cause a minor flow restriction but that has not seemed to be an issue for those running the inline. The water pump is no more impacted by a closed inline tstat than it is by a closed OEM tstat. Finally the purpose of the skirt hole is less to deal with air in the system, although it does help, but rather to provide for some passage of coolant, as it heats up, past the inline tstat so it opens in a timely manner. The latter at least in part because some of the earlier users of the inline experienced a brief spike in operating temp before the inline tstat opened, the skirt hole solved that problem to the extent that it is a problem.
Bottom line is either an OEM replacement or an inline will do the trick. One is stock and modestly expensive and the other is not stock but cheaper now and in the long run. Me I went for an OEM; sent my failed OEM to kap for his mod which went to stoutdog to replace his failing OEM; and I'm now awaiting kap's gear to clear customs down under.