Water Leak Dilemma

I recently reassembled my '44 H after a COMPLETE teardown and restoration. It was running fine except for some minor electrical and carburetor issues. Last week I ran it for about 10 minutes and shortly after, noticed that a slight oil leak from the oil pan (which previously leaked clear, clean oil) now leaked milky oil. I drained the oil pan to find what looked like chocolate milk indicating water in my oil. Upon removing the oil pan I discovered that a water droplet forms about every 70 seconds between the sleeve and the block on the #2 cylinder. My first thought (and hopefully I'm right) was that maybe the head gasket developed a leak and is expelling the water. The cylinder itself is dry inside. I'm praying that I don't have a cracked block.

Any thoughts?
 
I would replace the head gasket again. I would also check the head for warpage when you have it off. If that doesn't fix the leak there may be a pin hole in the block from rust behind the sleeve. Hal
 
Hal, I'm going to do as you suggest. If it does happen to be a pinhole, what are your thoughts on Barsleak? I know a few tractor enthusiasts that swear by the stuff.
 
I believe in Subaru Coolant conditioner for 2000 to 2005 Subaru engines. They had a block to head leak that gave them fits. It was a requisite addition to the coolant every time it was changed. (over the counter at Subaru) Bars leak is similar. Use it. Jim
 
Yes I would definitely try some Bar's stop leak. I have used it a few times and had good, lasting luck with it. I know the correct police will say take it apart and fix it right, but nowadays many new vehicles are sold new with a sealant in the coolant!
 
Yes. Barsleak is a good product, and if used as directed, will NOT clog the cooling system. It also has a water pump lubricant in it. Good stuff.
 
Yes in every way. It is not a compression leak, it is a cooling system into the crank case. No issue with high temp or high pressure. (I doubt that the head gasket is leaking. The seal under the sleeve ring is usually not a leak source (never seen it to be, and that is the only interface with the water, the block, and the sleeve. Jim
 

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