Welcome to JustAnswer.com! My name is DriveFast71(Ron) and I will do my best to answer all of your questions completely and accurately.
To ensure proper seating of replacement thermostat, carefully remove the bulged metal from the wall of the outlet connector recess that was created during. the staking procedure that held the OEM thermostat in place . It is not necessary to restake the replacement thermostat into the connector
Yes. Either the drain on the lower corner, or even the lower radiator hose.
To be perfectly honest with you- I never do that. When you remove the hose from the thermo housing (#1 in image above), the coolant needed to be removed will come out all by itself. Just be ready to catch it with a bucket.
If you are going to flush the system, you might be better off using the radiator draincock. With the lower hose removed, the water might flow out fast than it's coming in- this could be a problem. The draincock is on the driver's side of the radiator, lower corner.
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As for the inner diameter of the hose- i do not have access to that information. I'd have to measure it myself if faced with the need.