We are the shop that is now working on this car. He had told us that the engine had been gone through and everything looked good so we installed the engine and had just got it running and getting ready to do a cam break in when we noticed water dripping on the floor. Expecting just a loose hose or something simple we found water spewing out of a crack in the side of the head.
Here is a shot of the crack after removing the manifold. Once we get the head off we will have a better idea of the extent of the damage and can provide better pictures for the inquiring minds.
Basically it looks like we will need a new head. Hopefully we can locate a match and just replace the one side.... if not I guess we'll have to do the pair.
Here is a link if you are interested in the build:
http://www.facebook.com/media/set/?set=a.10150372048711134.356780.187765416133&type=3