the heater valve is open water should flow thru the core, and it seems that yours
must have been stuck closed for a while. Also looks like the car was laid up with
plain water in the cooling system instead of water/corrosion inhibitor mix.
Normally a couple of drain/flush cycles will get most of the crap out, but you must
have a good layer of sediment in the coolant passages. Driving gets water moving
around the system a bit faster and helps to dislodge crap. Coolant flush chemicals
help as well. But as I have said before, they also tend to remove the layer of
corrosion that is sealing minor leaks. Last time I used chemicals on a car that
had sat for a long time, I ended up with leaks that caused me no end of grief

So I would hold off the chemicals until you are ready to do a full engine strip down.
Better to just flush out as much crud as you can, and then use the water/corrosion
inhibitor mix. Leave it in there for a few months while driving around with the
heater tap open. Then drain/flush/re-fill. The brown color is nothing to worry
about if you have removed most of the sediment.
Cheers... jondee86