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I couldn’t find a bleeder on the manifold that @Satito referenced, but that is not to say it isn’t there, I just didn’t find it. What I did is filled up the funnel until it was showing liquid at the bottom, and started the truck and let it run for a long time and checked the heat to see if the air was coming out hot, then let it run for another 15 minutes. During this time the liquid level in the funnel may rise and fall, if it falls low enough to where you can see straight down to the bottom of the reservoir add more coolant or distilled water.
There is no air bleeder on a Gen 2 Xterra. I hear there is one on the Gen 1 units that many folks have.
 

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2004 Xterra XE 4WD Auto 3.3L NA V6
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I'm gonna double-down on @Satito's advice:

Check your radiator to be sure it is not the original stock unit. If it is, do not run the engine until you replace it. The price of the rad is less than 1/10th the price of a transmission.
 

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My 16 y/o son just bought a 2007 Nissan Xterra a couple of days ago. He took it to Walmart for an oil change then went riding around town for maybe 30 minutes. As he gets closer to home he noticed a smoke coming from the hood and came straight home. We popped the hood and saw this...
Is it an easy fix? Expensive? View attachment 77882
These are heater core tubes! On our 2005 similar year, if you do go in thru glove box area tubes screw into heater core about 2 hour job. Shop does about $800. tubes available thru Rock auto
 

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I would most definitely do a coolant flush and replace with nissan coolant. The xterra at 105K are suppose to get a coolant flush and spark plugs. I was scrolling threw the comments and a few of them are very helpful. The rads are pretty much junk so I would keep in mind that save up to get a new radiator. Job isn’t to hard at all just make sure you bleed the lines and check your trans fluid once radiator is replaced as you will loose both coolant and trans fluid.
 

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I would most definitely do a coolant flush and replace with nissan coolant. The xterra at 105K are suppose to get a coolant flush and spark plugs. I was scrolling threw the comments and a few of them are very helpful. The rads are pretty much junk so I would keep in mind that save up to get a new radiator. Job isn’t to hard at all just make sure you bleed the lines and check your trans fluid once radiator is replaced as you will loose both coolant and trans fluid.
Rads are pretty cheap thru Rock auto
 
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