2lt-ii cracked

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@Gusman86 , Understood. Most would have came to the same conclusion that you did, that the head had a crack as well. Hope you get some good news today after the head is Pressure Tested and you get it re-fitted soon!
So pressure test came back and the head is good. They are replacing the valve stem seals and skimming it.

The head gasket had perished as it was parked up for so long. (27 years) Hope to upgrade the turbo and delete the egr aswell while it's apart.
 
It will almost certainly be the head and not the gasket. A 5VZ-FE would actually be pretty straightforward from some aspects, since the transmission is already the correct model.
Actually, if the head was already replaced at some point, the gasket could easily have been leaking. I've seen this a few times now ( on my motor even ). These do well having the head retorqued a few 100km after it's been replaced I've found. And of course new OEM head bolts are a good idea.
 
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