ENGINE REBUILD HELP!!

Coolant leaking into the combustion chamber(s) comes from a gasket not sealing due to several different reasons, a cracked head, or a cracked block. Without seeing the engine I can't be positive but because you have an oil/coolant mixture in two adjacent cylinders the gasket is not sealing across both cylinders and a coolant passage in between them.

Milled or not, the head surface must be checked for warp. The head must be magnafluxed. New head bolts must be obtained unless you rolled them and they are dead straight and the threads are perfect. The bolts must be installed per the manual. Some engines have head bolts that get lightly oiled (to get the correct torque), others have bolts that must have sealer. The correct torque values must be obtained through the correct stepped pattern with an accurate torque wrench. The deck must also be checked with a steel. The service manual has the allowable warp for head and deck. It's usually something like .001" per 12" of head length but don't take this as gospel. You must verify you have the correct gasket and are installing it correctly. When you have this type of problem, you assume nothing and check everything.

Aluminum paint is better on the headgasket than coppercoat. Don't be stingy with it put a good coat on the block, gasket, and head.

Let the paint start getting tacky then install the head as usual.

Follow your torque sequence and torque the head to specs.

When you have the engine back together crank it and let it idle but cover the radiator with cardboard or a blanket and bring the engine temp up as the engine idles.

When the engine is up to normal operating temp shut it off. Now loosen each head bolt (one head bolt at a time in sequence) 1/2 round and retorque to spec while the engine is still hot.

I would bet you did'nt have a problem to start with if you had known how to do it.

The old engines are simple enough to work on but the repair manuals don't cover fine tweaks.