This guys looks and sounds like he smoked a huge reefa before making this video!!!
Get ready to pretend this bit of paper is a top view of your smoke....... What was the question?
http://www.youtube.com/watch?v=siBYl6RUoYg
BTW, his schematic is incorrect. These cheap machines wire the pump and element (and switch) in series, with the N/C thermo switch in parallel with the pump. When the thermo switch is closed the element is powered and the pump is bypassed.
I did a similar mod to mine, adding a 2nd N/O thermo switch just for the pump, so that you can't pump fluid until the block is above 70c.