Head Gasket

They're still physically there, but that doesn't mean they aren't totally crusty. I'm going to replace them when I do head gaskets. I think I'll just do gaskets because I really don't think the rings are worn, if they were I would surely have smoke, I'd think.

Not sure I fully understand your query.... Rings aren't making it pass water, for sure. You've already described a motor in need of a top end rebuild.... you'll likely see any evidence of problems when you pull the heads, if you look closely. If reusing the same heads, have your machinist take a slight cut, which will also show problems as it fixes them (if you watch the cut). Check the intake fit carefully as going back together and you are home free. If it still spits a little water after all that warming up, it is the exhaust. Unfortunately, just saying it has duals does not speak volumes..... some mufflers hold moisture more than others, but they all lose them as they warm up. HTH, Lefty71