I just pulled the head off my 3fe and could not find the cause of the oil and water mixing. The gasket looked fine or rather, I couldnt find anything that looked like leaking. head bolts next to exh ports had carbon buildup (seemed like exhaust carbon) on the threads and were very hard to take out.
without goin to the machine shop, are there any areas to look at for cracks on the head or block?
without goin to the machine shop, are there any areas to look at for cracks on the head or block?