Hi there,
Water in the oil would indicate one of two things, a very badly blown head gasket, and as you say it runs well this will not be the case, the other cause will be a cracked head, cracked blocked are very rare indeed. When the head gasket was done did you get the head crack tested and pressure tested, checked for warp and straightened if required, and then re faced? These are all vital tests that should be done on every head that is removed.
Mark (mhpautos)
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Tuesday, October 13th, 2009 AT 5:37 AM