Great posts that have been very helpful. The good news is that all looks well from the inside. Engine turns over by hand smoothly, there actually wasn't any obvious blow by points on the head gaskets, leading us to think if may have actually been a leak at the intake facings - the intake bolts were due to be re-torqued and weren't very tight when I undid them. I also noted that there was indeed a fair amount of water in the water jacket and it ran out all over the place when I removed the heads. So, something was getting in there.
Now I have to clean up the goop, drop the pan and clean it, and start the re-assembly. Based on the dis-assembkly, the hardest thing appears to be getting a wrench on the number 8 cylinder lower head bolt - it's down very close to the footbox and a devil to get a good angle on it. Appreciate any tips on that if you have them.
The view from inside - note all the
oil & water goop in the lifter valley
Dr. Cracker confers with Dr. Craft