Based on the additional information it may well be an air lock in the system hence heater not working. Have you recently drained the cooling system to add anti freeze?
I dont know the engine well enough but there may be an air bleed screw at the higest point in the cooling system.
If not from cold start the engine with the heater valve open (ie as if to warm up the car) and the expansion tank pressure cap removed -top up water to marked level- no more.
Run the engine and as it warms up -taking care on moving parts- see if you can flex /compress the bottom hose ,encouraging water to displace any air, this may overcome problem.
Also might be worth checking the seal on the expansion tank cap maybe replace cap .
Is cooling fan operating okay
Maurice
January 2010