It's the water expanding which causes the level in the tank to rise, not the oxygen.that is why its called a feed & EXPANSION tank! that is where the hot water will go as the oxygen in the system expands.
The expansion is approximately 4% of the volume of the water in the complete system when cold. So if you have 75 litres, it will expand by 3 litresthe water level in the tank should not rise too much only very little.
Make sure that the float valve in the F/E tank opens before the water level reaches the outlet at the bottom of the tank.also check the level of the water in the tank when cold, isn't more than say 4 inches
Swap the pump round
swap the 2 port valves round
swap the flow and return on the cylinder
and change the boiler pipework as per drawing
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