Mark, it was just bad luck I hope. I don't have the bypass hose on mine but I have always drilled a 3mm hole through the outer ring of the tstat as recommended by Bazz from Datsport and has worked well so far. Like David says, this restrictor comes with instruction saying it must be used with a tstat which is a little confusing. Ha.
David, this is the exact part I have, he sounded like a Datsun guru and Mamabears lair had quite a few very nice goodies. Have you fitted it yet, if so how does it go?