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sounds liek a head gasket... could be a cracked head though...... the only way to find out is to take it apart..... get the head checked out, if its good have a machine shop do a valve job and resurface the head, then get a new head gasket and your good to go, will also want to replace the head bolts with studs if you have never attempted this kind of thing before, on some engines the head bolts are reuseable, but its best to get a new set
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