I just put a timing chain on my 229 Chevy, so it's fresh in my mind. If you drain your coolant into a clean bucket (and it's clean) you can put it back in after you change the thermostat. A new t-stat and cap will run you about $15 at Autozone or ?
After you get the stat in, fill up the radiator. Start the car and continue to slowly fill the radiator until it stays full, then put the cap on. Let the car idle for about 15 minutes, until it warms up to where the upper hose feels warm. Then, if the reserve tank is empty, fill it to about 2 inches above the COLD level. This is where the level should approximately be any time the engine is warm. Drive the car around for 10-15 monutes with the heat on, then re-check the level in the reserve tank.
Once the engine cools back down, the level should drop to the cold level in the reserve tank. If at any time the coolant bubbles over in to the reserve tank with the engine warm, or sucks it all out when cold, you might be in to a head gasket problem, but let's hope for the best.
-Mark-