man, the more i look at this post the more it seems like the block deck surface and head deck surface are not mating correctly,the reason i say this is because you say you see exhaust gas leaks ,you also say that it seems like water is getting into the block. check the valve seals,if this is okay then make sure the blocks deck surface is machined to factory specs and also that the head deck is machined to factory specs,then with a new metal head gasket slap that onry thing back together use arp fasteners.if you've done all this correctly then all you have to worry about is the stuff i mentioned to you in my previouse post.i'm not assuming that you haven't done this correctly, i just want to make sure you have the right information.i hope this helps, if it doesn't help then i deserve 900 lashes with a wet noodle.
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