Rob, as Dave says above, the pump housing must be fully immersed in the fluid being pumped, most run with fluid covering the pump by a good couple of inches.
Most of these pumps (that I've seen) do pour out a fair bit of fluid from the shaft housing when running, this is to prevent cavitation (and the noise that ensues) when the pump outlet is stopped off and also helps to maintain a good mix of coolant fluid.
Edited By Lofty76 on 09/11/2013 22:43:41