You know what happens when you ASSUME, and this is definitely the case here.
ok, so it's hard to count how many things you're doing wrong but I'll try...
1. you can't run the 4tecs out of water for more than a few seconds or they will overheat, but I think you found that out. yes, the engine is a closed loop cooling system but the exhaust is not, it needs the lake water for cooling.
2. You can't run it on the hose for more than 3 or 4 minutes. the drive train will overheat, it relies on the lake water for cooling.
3. The only water pump is the pump in the closed loop engine cooling system and they very, very, rarely fail(unless you do something wrong like cook the motor), the water for the exhaust cooling is pumped by force of the jet pump.
4. I'm guessing you turned on the water before you started the engine. a definite no-no, the water will backflow into the motor through the exhaust. start engine, turn on water immediately, run 2 minutes, shut off water, shut off engine immediately.