tsalagi, you say the heater quit working.does that mean the fan or nor heat coming from it?
if it was no heat,that was probably caused by loss of coolant due to the head gasket leaking it.
when the coolant leaks out the system fills with air,its hard to keep air hot enough to use for the heater,you blow air across a heater core thats
full of air and it cools off almost instantaneously.them jeeps are known for bad heads/gaskets.not to mention intake/exhaust manifolds that like to warp and
t-case out put shaft seals that like to leak and whel bearings and other things.
the rust comes from using straight water in the cooling system.it doesnt matter if you had the radiator adn coolant pumps replaced or not.water in the engine block doesnt take long to create rust.rust is a by product of heating water in a metal.heating water in metal actually causes rust faster tahn just leaving water sit in metal without heating it.i as a professional automotive technician would never ever recomend using straight water in an engine cooling system.always use a 50/50 mix of good quality anti-freeze with water.never pour coolant in the radiator and then add water,always mix it prior to putting in the system,if its done the other way it may never mix properly.the rad kit that i mentioned before,is a device that hooks up to the fill neck on the radiator.then you attach an air hose to it and creat a "vacuum" in the cooling system.this vacuum will be great enough to collapse all radiator and heater hoses.this process removes any and all air (if done properly) from the cooling system.
once 26" of mercury have been achieved(vacuum) let it sit for atleast 1 mins.thie should pull any air that may be trapped in the system,if it does not hold this vacuum then there are leaks somewhere in the cooling system and that will ingest air back into the system.air in the system is bad and can actually cause a "hot pocket" of steam that can cause internal damage to the system.if the system is holding vacuum then its time to use the "rad kit" to fill the system.i have used this device and love it.
i do alot of cooling sysetm/ac work nad swear by this tool,as a matter of fact FORD does not recomend filling a modern cooling system any other way.
good luck