thanks for the advice guys. No there is not T-stat at this moment, thats my next try before r&r heads. I will try a wet compression test and leakdown before much else. Also the heads have studs installed, no bolts. keeping fingers crossed at this point!! thanks, Derrick

Its a HEAD GASKET !! No big deal :D :D :D

East and very common !! They blow or leak into the lifter valley,
Most I've seen will blow between cyl. and then leak water into the lifter valley and gets pumped thru the motor and makes searing hot steam comes as well as smoke out the breathers:( :(

This really is very common ,thats why chevy and merlin put the extra head bolt bosses in the lifter valley to stop this blowing inthe lifter valley ,,most after market blocks have this boss added :D :D

P.S. Thats one reason why we o-ring heads ,to stop the blowing outward of the combustion gases into the valley :D

OK guys, heres the deal, I think there is some confusion. My valve covers are NOT full off water, the breathers on the valve covers had a lot of water collect in them, this I belive was due to low water temp (40 degree lake temp) and my old T-stat being stuck open. The temp never reached above 130-135 while crusing. Steam building up maybe, just a lot of condensation, not sure, put new T-stat in it today, warmed up nicely to 150-160 degrees, not nearly as much water/condensation build-up. However, low compression problem still there, #8 really low at 95psi, wet test (oil in cylinder) did not help, i will be doing leak down test this weekend. Cylinders #3 and #4 are also low at 125 psi. Ill be checking them too. Thats all i have for now, thanks for the advice, please keep ideas coming! Derrick