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Play with the pump impeller a bit. This exact same thing happened to me durring a 306 build up for my 95 Mustang Cobra. Brand new Stewart water pump broke the compression fit where the impeller goes on. Impellar would sometimes spin, sometimes not. Reving the motor increased temp dramatically. Someone earlier suggested running the motor with the upper radiator hose off and pointed up to see if water or air / nothing comes out. Just remember to stick a water hose in the radiator to keep water flowing into the motor. Also, do it while it is cold because when hot, expansion will force the water out by itself.
Curt
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