Cant really say what went wrong the first time, but, she is peeing like a champ now. Still never started peeing, and started getting hot. Took apart again. Some blades on impeller were turned right, some were turned left. Put them all in the right direction, put back together, and it is good to go.
Thanks for tips TFFRs.
BTW, even though water was out of the engine, after second assembly, it started peeing immediately.