Hi Matthewmlls,
The steam from the engine indicates coolant is leaking somewhere and you need visually check for the leaks or get a pressure test done. From the area of the steam coming out, most probably the water pump is leaking.
When engine is cold, remove the radiator cap and check the coolant level, I believe it should be low or empty.
Insufficient coolant in system would cause the heater to work erratically.
If you top up the coolant, do not close the radiator cap first.
Turn heater to max and run engine. Top up the radiator if the level drops until it stabilises. Hope you have not damaged the head gasket yet.
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Thursday, December 31st, 2009 AT 11:38 AM