Re: water in the oil
I did tap the bolt holes and ran a die on the bolts. I cleaned out the holes thoroughly, and ran the bolts down to the bottom with the head off to check the height of the bolts when bottomed out vs. the height of the head (learned that trick from reading posts on this site!) Plenty of clearance- the bolts are not bottomed out.
I ordered the silicone type cylinder head gasket this time, and I'll probably have the head surfaced before reinstalling it.
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