Help troubleshooting my 574 Gas Engine

Originally thought it was a blown head gasket. Took engine apart, old gasket seems in tact with no visible damage.

Thought it was the head gasket because coolant was leaking into the oil and there was heavy smoke.

What's the next step? We didn't go any further yet.
 
Many things can cause that problem. Blown head gasket, cracked head, if wet sleeved bad sleeve seal and or a cracked block.
 
Have the head checked for cracks (pressure and magnaflux) if a crack is found, bingo) if not a cracked sleeve, or
things pointed out by old and others apply. Jim
 
If you were to reseat the head and supply ~15psi air to the coolant side of the engine, and remove the oil pan, you could at least visualize the area from which the leak is emanating. A lesser possibility is that its cracked in the cylinder head but then you'd see coolant coming back thru the drain ports from the overhead. Or just leave the rocker cover gasket off and you would have direct access.
 
Have seen pinhole in cyl wall also. Every sleevless eng I OH gets bored and sleeved for insurance. 1st time cust pays, 2nd time it's on me.
 

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