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The stock heat exchanger has a water supply running through it. When the heat exchanger pops you first get oil in the water and then if you don't drop the oil and water immediately you get water in the oil and a fubar engine. The billet heat exchanger has no water running through it. The HE has fins on it like a small rad to cool the oil inside rather than the water from the rad cooling the oil. So you have to blank the two pipes off that went to the stock HE. Some people just use a bit of tubing to connect the two redundant pipes together. That's fine so long as you use sold bar as you no longer want wanted flowing through this pipes and returning half way up the radiator. Take a look at the new 675 ST hoses and you will see they have done away with the return hose that went from the HE to the middle R/H side of the rad. It now returns into the bottom L/H hose.
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I've not got a degree in thermodynamics so I can't explain why but we know from experiences that its better to cap these hoses than to connect them and let water run through them. My only explanation would be you don't want to return hot water halfway up the rad as you are not getting the full effect of the radiator. So you cap the pipes and all the hot water is forced to return to the bottom of the rad.
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Price is already dropped 50 pounds from the price on their website and if we get a group buy, it's half off already