Re: seepage around head gasket and studs.
If it seeps (leaks) coolant, it ain't right! If coolant is coming out
it's logical to surmise that it's going in also. Like in to the
combustion chambers & oil passages. It needs to come back off so as to
find out the source of the problem. Hate to see you spend all that $$
and have it go bad.
Did you: Check the top of the block for warpage & high spots? Chamfer
the head stud holes? True the head? Magnaflux the head? Examine the
studs to see if they'd been stretched? Make sure the gasket matched
just right? Anything else anyone on the list can think of?
When you put it back together, you might try Twist's twist of wire. I
put it in my B; figured it couldn't hurt.