getting your ticket punched, olympic. In taking the lower unit off yet again (blindfolded, maybe, just for grins), might put it in the tub or barrel deep enough to cover the inlets, then turn the driveshaft clockwise with an electric drill. Can see if there is water pushed up from the pump (should be a good, steady flow).
edit. also can remove the t.stat and cover, and see if water is getting up there (either with that flushing rig, or cranking the motor). If doing that, check the t.stat to see if it is operating -- will likely need another gasket, but maybe not. It's a thick gasket, and kind of a difficult seal, in my opinion. If water is getting up there, could replace the t.stat cover and run it a bit without a t.stat -- if STILL no water moving through, know the blockage is beyond the t.stat.
(If it's still together, try the t.stat thing first -- hard to believe from your description the pump isn't working -- but still possible.)