Harrie, I think you know what you are doing. It takes a careful person to run a laser cut process.
Eric: You're flying on beginner's luck - right?
No, just hand-me-down embedded knowledge. How many HAMB guys really have no idea? That's my point...
Slade, I wasn't trying to put you down. Hope your wife is going easy on you.
Just got back from 5 hours cleaning bricks in the rain (gotta love those jobs); time to have a shot at the situation.
Obviously, the gasket has to come out, and you'll need another one. Hopefully that's the sum total of damage. Time to unhook it all again.
Get a "plug" or "bottoming" tap for the threads, and use it with a smear of light oil. This will stick the crud in the tap flutes. I have 7/16 BSW, but UNC is the correct thread type. When the bolts are out, try to see if there is evidence of not enough thread - maybe silvering on the bolt lead-out or burring on the block lead-in.
Checking the block can be done with a $10 engineer's steel 12" rule. Use a 2' straightedge if you have one, but don't spend if you don't. Check along the block, across it, diagonals, just look for low spots, especially on the lifter side. I would say over 5 thou is cause for worry in your case. While you're at it, measure your deck height with feeler gauges under the rule, with a piston at TDC, and measure your timing chain slop (how many degrees movement back from TDC before rotor moves). And gauge the overbore if you have Verniers. (Now you can do your CR if you measure piston dish size/depth, too.)
Your threads should always be moly greased or engine oiled for the head. As grease is best under the heads, I use it on the threads, too. Old head bolts can break. I have a spectacular picture (if it comes out) of a near miss last week. The bolt came out 2/3 broken.
The gasket
can be accidentally end-to ended. Easy way to check is the coolant holes at the front of the gasket are small and round, while the ones at the rear of the block are teardrop-like. This does sound likely here.
Setting the gasket between torquing is recommended by every man and his dog.
Minimum break = 1 cup coffee or tea, each time.
By "cocking" I meant that the head was sitting up slightly one edge, and after the bolts were snug, had held that position. Unlikely. More possible is a different header flange or thermo housing projecting below the level of the head face, stopping it from making full contact. I put these parts on at 65 pounds (Stage II) head bolt setting.
Beyond that, not much I can think of right now. It'll come good. Just take it easy, methodically, and remember to look after your back with that heavy piece of iron. Stress and occupational health/safety are not good bedfellows. A friend has repeatedly injured his already bad back, trying to do repairs. Now he just passes me the tools. :roll:
I'll check in about 0900 or so (RI time), to see how things are looking.
Adam.