Woah, you drilled a hole in the top of the thermostat? Your gonna need to replace that now.
One thing i can think of, is the plastic lip for the hose on the radiator becomes brittle over time and can crack. Inspect this. Broken peices of plastic *could* be the reason the heater hose is potentially clogged. If its broken it will require replacement of the radiator.
Here is also a good DIY on the heater valve: Pelican Technical Article: BMW Heater Valve Cleaning/Flushing
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