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Get it sleeved? Mine has the passenger side bank sleeved and it hasn't caused any issues. However, I too had problem with heads leaking and dumping water into the cylinder from breached coolant passage. Probably worth having a reputable engine builder go through it while it's out. I wouldn't think you'd need a new short block, but I only play a mechanic on TV, and I slept in my own bed last night, not a Holiday Inn Express :-)
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