So much to cover here.
The waterfall sound indicates nothing more than air in the heater core....
where the coolant has gone is always the next question though.
If the white smoke smells sweet at all it is most likely coolant. You can absolutely blow a HG and have it do nothing but dump coolant into the cylinders.... The cylinders are surrounded by eccentric elliptical coolant passages (I know you saw them, they're IMPOSSIBLE to miss). Pull your spark plugs and check them for water and look into the cylinders for moisture or to see if any of the piston crowns looks like it's been getting steam cleaned.
The preferred torque is 75ft lbs for bolts... studs use a higher torque; Whether you use ARP or Toyota doesn't matter they're both very solid fasteners and are reusable (although I don't recommend reusing 20+ year old fasteners).
How rough were the engine and head decks? Was everything checked for flatness? Where the head and block inspected for cracks and micro-fractures? Did you put any type of coating on the HG? Did you retorque after a few heat cycles? How many miles have you put on the engine since? Were the threads in the block properly cleaned and chased?
__________________
If something breaks or you need to contact a member of the administration please post HERE. Unless it's a private or administration matter please post it on the forum. It benefits no one else if car related questions aren't posted for future users and takes away from the time I'm able to spend helping on the rest of the forum.
If you're so inclined I'm always more than happy to accept tips via PayPal. 
Tip Jar ---> 
|