I picked up my cylinder head from the machine shop this morning.They skimmed .003 off the head to make it flat. Talking to the machinist and he mentioned, as others on here have, that there may be an issue with the figure of 8 gaskets at the bottom of the liners that is causing the leakage. As far as I can tell the liners are within spec of .003 -.006 above the block but I am going to have a mechanic friend measure them as well just to make sure. I had noticed when the head was off that one of the studs was loose near where coolant had got into the 2nd cylinder. He told me that when they do work on diesel blocks they put Permatex 59234 High Temp sealant on the head stud threads that go into the block to prevent coolant from coming up the threads. How common an issue is coolant leaking up the stud threads on the TR3 cyl head? I may pull the studs and apply the sealant there. I do have a tube of Permatex Optimum Red high temp gasket maker.....would that be better to do the job?