water in the oil

Leaking oil or coolant? There should not be any coolant at the back side of the engine, if it is coolant it must be leaking between the intake and the head and running done the back side of the block.

Coolant. Be kinda weird to leak that much oil there. It's hard to tell EXACTLY where a leak is coming from with the engine put together and in the car. All I could see from the angle I had was it running off the block.

Not saying this is right, but for the past 25+ years I have just cut the front of the seal with a knife or razor (horizontal area below the thermostat where the intake meets the block), then wedge a big flat blade screwdriver or pry bar in there and pop the intake up....eazy peasy.
Thanks flyfish! That did the trick. I grabbed one of my pliable scrapers, centered it in the cork gasket, started at one side angled toward the center tapped it till I hit the center pin and repeated from the other size. It popped right off "eazy peasy" I took a wide flat blade screwdriver and put it in between the cork I'd split, just a couple of taps and the gaskets between it and the heads let loose. No damage to the intake or the block.

A new set of intake gaskets are in order. I'll have to borrow my neighbors granite surface plate to check the flatness of the milled surfaces. I was a machinist, he was a die setter. I'm sure we'll be able to manage.