Re: I feel a bit stupid.... (as usual)
WIL: It can only fit in spring up. (out of the head and into the cover.)
Actually, this is contrary to what you would think because it puts the expanding pellet in the cold area of the head and relies upon the weep hole in the thermostat to deliver hot water to the pellet.
BUT: when you try to insert it the "correct" way with the pellet inside the head, you will quickly discover that the hole on the head is too small to fit the spring end.
Oh, and by the way: Not only do you feel stupid, you look stupid too! LOL Gotta kick them while they are down--it's easier.
You made me curious so I took a couple of minutes to look it up--My older Clymer, powerhead chapter, page 302, figure 80, shows the correct placement of the thermostat.
I am reasonably certain that on the newer Force engines with the finned heads, the thermostat can fit in the head with the pellet in the hot water side. The hole is larger.