Sailor, thanks for the advice. I am new on Focus and although I worked on other cars, each car is a unique experience by itself.
I will continue to flush and test the cooling system with distilled water. Once everything tests ok, I will replace the water with use 50/50 ethylene glycol antifreeze.
I will check all hoses and replace some of them. Can you send me a link for a proper bleeding of the cooling system? During testing stages, I will not be using the thermostat. Is it necessary to follow a bleeding procedure if the thermostat is not installed?