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Used 1 gallon of coolant in 130 mi

Should I just go ahead and pull the heads or would it be easier to pull the whole engine. The engine looks fairly simple to come out and I would be able to do a better job cleaning and inspecting parts.
 
506 blocks from 97-early 99 were famous for cracking in the #8 cylinder about mid way down. This crack doesn't let alot of pressure in as it is midway down the cylinder wall, but will spray coolant into the engine when the piston goes past the crack. This was all to common back in the late 90's, and was why I mentioned it early on.

This was one of the reasons for the TSB and the Coolant Tabs.....Correct FERM?
 
Got the thermostat housing off

IT took me awhile but I finally got around to take off the thermostat housing.
The cdr and intake was full of sludge. Hope the Turbo not messed up. I ran the engine for a short time and saw only once a bunch of bubbles on the right side and notice lots of steam/vapor coming out of the cdr hole on the valve cover. Next step is pulling the engine
 
It's good you didn't push it to total failure. Maybe you can salvage the majority of your parts. Hopefully no bearings spun on you.
 
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