Removing the engine

The easiest way to work on the engine is to remove it. Not so much work on this car... with a little help from my new friends at the garage.

Water and oil are mixing

Bad news. Oil and water are mixing together. I feared this may happen. The engine will have to be opened up, new head gaskets and all that. What will we find when we open the engine? Who know.
I expect I will be sending the head off to be redone (new valve guides, valves re-cut, etc) and replace the rings, and hone the cylinders at the very least.