Here's the latest update: I drove the vehicle 14-15 miles. When at low speed or idle the temp would climb to the notch above midway. As long as I was running a consistent 50-60 mph the unit would sit at or just below the halfway mark. Still get no heat. Temp from heater is no different than if it is on the cold setting. I feel that the two issues are related but again I'm not a mechanic. On a side note, when the vehicle wasn't running I had accessories on and rotated the heat and cold selector and heard the motors that open and close the blend door. Also checked the vent direction ie floor, upper vents or both and heard the motor that makes those changes. I know that the door or flap that changes the vent direction is working as the flow of air changes with the selection.
As for your question about hearing sloshing, no I heard no sloshing while I was driving.
