Originally Posted by socalelect
This one was putting a little bit of water in the oil it plugged up the blow by tube with a gray slime. This gen ran 12 hrs a day but only used a half gallon of water a week but they didn't keep up on the sca in the coolant so I think the liners may be pitted badly
Bingo.,, SCA is the key item on wet sleeved engines and with your situation it pretty much done for due a major inframe so just be prepare for two differnt situaton when you pull the top end off either upper liner stop is cracked or have counterbore cracked in either location that will do a slow leak.
If you see the head is good shape I will give you a trick to do this to find out if liner leak or counterbore leak is take few washer and build a brige and toqure the cylinder head bolts to specs and pressure up the coolant to about 10 or 15 PSIG ( If I recall the correct number ) and yank the oil pan out and look from below if you see it drip then the O ring is done for it. ( mid stop )
If stay dry then counterbore or upper stop is cracked.
But to reset the counterbore can be pain in butt if don't have proper counterbore boring tool so check with dail indecator to see how much it runs out if too much you will have to ream it out with counterbore drilling rig. ( just a very little then you will have to add shim to get all the bore at same height.)