honestly, you should have a res anyway. a cheap walmart container with npt fittings epoxy'd on would work just fine.
you want your pump inlet to be unrestricted and its best to gravity feed it straight from the res.
you put a drain port on your res so after the ice melts, you can drain the excess water. you need somewhere for the air bubbles to go too, since air-bubbles neuter your pump's efficiency.
idealy, you would add a series of valves so your pump can bypass your heat exchanger which are just ball valves. pretty cheap and simple to install.
Res on a DD most definately. At least 2 gallons. also the grav feed from res is also very correct (unless you get a self priming pump), the first pump my friend had blew cause it was in the front bumper and just wasnt low enough to have water at the inlet at all times. his res is in the trunk and the pump is in the rear bumper now so water is always on the inlet. you dont really need to have a drain port on the res though, he put one of those $1 3/4" coolant t's in the line before the pump (and return for flushing), and you can drain off some liquid. it depends on where u have the res but in the trunk like his, a drain isnt feasable (inline works just fine). and as long as the tank is the highest point it will self bleed, he had an inline bleeder but it never needed it as long as the res is above the core, however if its not, definately put a bleeder fitting at the highest point.
why bypass the heat exchanger though? in the front bumper it will be one of the lowest points and keeping the fluid cool is paramount. im a little confused on the bypass part since that would be more parts to leak..