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I would wash out the engine bay so you can see a little better?
I just filled that same gap with grey RTV because it seemed to be the last oil leak/seep that my old engine had but I have not had it out of my shop to run it yet.
With that coolant leak, you don't have a choice but to pull the front accessory cover because there is a water passage from the water pump that leads into the block that's sealed by an O-ring between the cover and the front of the block. Looking at the pic you can see the half dollar size hole at the top right. It's not going to be a small job. Think oil pan and possibly head removal.So do you think the best thing would just be to pull it and reseal?
I don't see how a water leak from that hole in the accessory cover could enter the combustion chamber. Are you positive that your HG is not leaking externally?Well damn, bad news. Oh well it was bound to happen. I guess this is a good reason to do all that PM in there. Could that seal be leaking in to the cylinder? I am just wondering if this could cause my low power issue.