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Re: EA engine problems - revisited (like the Matrix LOL)
Seems to me you have two options - one, the fuel preheat system is leaking into the manifold.
It surprises me, if that's the case, that the system would retain pressure.
Two, you do have a small leak in the head gasket or crack in the head. This is more likely - it will be sealed until the motor heats up, at which point everything expands and the leaking can begin.
I suggest you stick MPFI on your existing motor, and clean out the oilways with diesel or kero. If there is still water, it has to be the head gasket, and then you could look at sourcing a bare motor. I don't believe that option should be any more expensive than finding a MPFI motor anyway.
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Proud TQE Operator and President of SEFAG - the Society for the Elimination of Ford Automatic Gearboxes 
Pacemaker headers + 2.5" exhaust
EF Fairmont interior
MP3 player
Lowered King springs
5 speed manual
EF motor
Newest mod: EF Ghia wiring loom and dash
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