Just to let you all know. The problem was the pump and not the installation. I guess buying a pump from the local auto zone was not a good idea. It's and inferiority issue. I talked to some other guys locally and they said that they had the same problem. They also said that if I grind down the offending impeller bits that will take care of it and still function properly. Just make sure to take enough off to account for expansion of the impeller when hot and the loostening of the berings when warmed up.

What a pain in the ass. Not worth the 15 bucks I saved by going to the local place.
My advise on this - make sure your water pump is a GMB
