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Glad to hear that you are back up and running!

The suspense is killing me! lol

If your engine block is a "TD" casting, the bolts should all be tightened to the higher specs. One reason for re-designing the block and going to the "thick deck" was that the engines were blowing head gaskets like they were going out of style. The clamping force provided by the head studs was...

Any news? Did you get it fired up?

You are better off re-using the rubber valve cover gaskets. They are re-usable by design, maybe clean gently and spray with rubber revival compound of your choice. The valve covers need not be ape tight; just enough for the thick rubber gasket to seal. I would stay away from RTV for the valve...

From the picture it appears that the fuel line and electrical connection for the flame heater are in place.

Oh, if the return lines are that hard, then they will also be brittle. Do yourself a favour and replace them with 1/4" DOT air line while you are at it. DOT line holds up to diesel just fine. The original lines are nylon/polyamide if you are a purist. Super simple to do and it takes away the...

While the finding of water is disconcerting, you were in fact super diligent and discovered that before running the engine for any extended length of time. That most certainly avoided further complications. A headgasket failure where coolant enters the oil stream results in oil becoming...