The engine temperature rises until it get so hot the internal oil burns away and then the engine locks up and stops. Then you call a wrecker and get ready to spend a lot of money or abandon the car where it sits.
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Running a car with no thermostat will decrease gas mileage and pollute because the engine is not being maintained at optimum temperature. On the cars made in the last 20 years that are computerized, this can effect other system efficiency. However, if it is only temporary it will probably be unnoticed.
On some newer vehicles it will trip the check engine light.
Probably, unless a cylinder has filled with engine coolant. In any case it is not a good idea to run an engine in that condition, if coolant mixes with the motor oil you can expect more damage to the engine.
If you use more water than coolant, then your car isn't protected against freezing conditions to as low of a temperature as the container may indicate. Also there is a possibility of rusting if you use only water (I've been told).
Looks like you're getting coolant mixed in with the engine oil. Not good. Receipe for disaster. Could be a bad head gasket and/or cracked head. Do not run engine any longer until you have it checked out. Coolant in the oil will destroy bearings in a short time.
Not getting any fuel.
Rear defrost has nothing to do with the engine. Possible causes, low in coolant, faulty thermostat, air lock in the coolant system, faulty temp. switch, ( manual or electronic?) inside car. Did you replace anything? Add any antifreeze? Change any hoses?