I'd like to confirm what I'm 99% sure of before I start getting into the heater removal.

The plan is to run a bypass hose loop for now and do the permanent block off plates when I need a rebuild. So All I need to do is make the two circled hoses complete the loop and I'm good to go right?

The yellow line is off the head.

That's it!

Got the heater core out, and still working on the interior sound deadening. I finally got my oil cooler housing installed and when I went to fill the car with water, the coolant started pouring out the top of the engine right around here:



So far this "good deal" nearly ready to run car has become as expensive as if I'd bought a turn-key frontrunning car with a seat and spares.

Hmm,
That area seems to be where the line to the heater are. There should be 1 port on the back of the head torward the drivers side that sends water to the heater valve. It is possible the gasket for the port has failed and needs to be replaced.

Other than that spot there are no other water areas in the back of the engine that might leak.

Joe,

Look closely at the picture, you can see around the plug the angular edges of where the block is cracked. I didn't highlight it, but you can definitely make it out if you know to look for it.

Ok,
yeah... I was going to post that only hose that could leak back there was that heater one. Anyother leaks were a cracked head or block.

It does look like you might have only cracked the head.

That is not bad as you can get donor heads cheap and have them fixed up. It is a good idea anyway.