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Thanks mtflat and others for all of the help. As you described, I found the inlet and outlet for the heater hoses. However, these had been pluged. I took the heater box apart and cleaned the coils and lubricated the motor. It now works! You had mentioned a valve to turn the water flow to the heater off. I have no valve. What would this look line, would you have a part number or know where I could get one. NAP in Florida has been slow to send a CD listing for parts.
Glad to help! I'd start with Sacramento Vintage Ford. 1-888-367-3100 You're looking for a 'heater valve' pn 8299 for $8.50 in their '02 catalog.
They also sell the nipple that screws into the water pump if you need that. pn 8298 at $2.50.
You probably know this, but the heater valve screws into one of the threaded ports in the top of the passenger side head. Temp sender goes into the other hole.