The "Thermal Pellet" is actually a temprature actuated bypass. It closes once the oil reaches ~150-160F, depending on year model.
The reason ISC says to remove it, is that is intended for a track car. Track cars, you want a full flow thru the oil cooler. This helps to prevent overheating.
On the street, you want the oil temp to remain warm enough to flow freely, bu not too hot.
I have an FC FMOC on my '83 12A, as does misthael on his 84 12A. Both still have the temp bypass in place.
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