Re: water in the oil
Will,
I have found that when working with the silicone type gaskets, both surfaces must be perfect. IMO the copper gaskets are a little more "forgiving". It sounds like you have hit everything right on the money. If the deck on the block is pitted at the front and rear water jacket, I've used a thin coat of #1 Permatex in the pitted area's. This will help seal these area's. Torque head in a circular pattern starting from the middle head bolt. Hope this helps.
JJ
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