I have never heard of such a condition,but it sounds like it definitely could use a new water pump and change your thermostat.You should be able to run water through from the top of the pump to the bottom.
Yes, It is a very good possibility. Also, the valve body may be cracked if the dent was severe enough. Circumstances were different, but I ran into a similiar problem on my 1991 Ram Charger. If those oil galleries have a disrupted flow of fluid, It will create this problem.
I hope this helps.