Um, the thermostat IS supposed to be in the upper hose. Not all vehicles have outlet-side thermostats, but most do, including 1995 era Nissans. The rubber gasket ring that broke may or may not come with the new thermostat gasket. When you pickup the new thermostat (and I would recommend a genuine Nissan part), check to see if it comes with a new gasket...which is the rubber ring that broke on yours.
Sounds like your truck doesn't have a thermostat. Just curious -- why are you going to "replace" it? Irregular cooling system performance?
