Bud_wiser,

Just a few comments:
1) You could have excess air in the coolant system, as shown by bubbles coming from rad inlet. Just remove the air by uncapping the rad, let engine idle, and wait for all the bubbles to disappear. If the water level drops, then add til the rad top and then cap the rad.

2) A normal rad system will not require constant adding of water. You'll have to find out if there's a leak or it's overheating causing the water level to drop. If your rad cap is working right, then water from the reservoir should flow back to the rad once engine cools down.