I have not yet retorqued the head having put only about 200 miles on it, but I will do that next. I was going to do it at about 500 miles. The engine does not run hot, usually about 185, never over 190, unless it is a very hot day and I am stuck in traffic, and then only about 195. I know it could be condensation, but the amount of gunk, sludge, under the valve cover seems too much for just condensation. The drop in coolant level leads me to think there is a leak. No I do not have a recovery bottle for the radiator. I try to keep the level about 2 inches down from the top of the lip or about an inch down into the radiator itself, so I don't push some out through the cap. I don't think I have the problem with the head gasket sealing, but I am concerned there might be a hairline crack in the block somewhere, perhaps oil galleries next to water passages being corroded. I do not however get any oil in the coolant. Maybe, I should drive this thing and forget about it. What worries me though is the belief that antifreeze does bad things to bearings.