OK SO AN UPDATE ON THIS TOPIC,
bolts dont go in water jackets, so no need for pipe sealant, we removed the timing cover to check the 3 seals, they were all in place, while the timing cover was off, i covered the 2 water outlets and put a hose in the water inlet, so water was entering, and in theory should not have anywhere to exit, but it started flowing out from the oil drain plug, so there is definately a hole?? or something else allowing water to mix with oil inside the block/heads?? told engine supplier what we had done, he agreed there must be a problem with the block, he wants me to remove the sump cover to seee where the water is coming from, told him i dont have the time or tools to remove the sump ( lifting engine, removing cross member etc, and that what difference does it make, the motor needs to come out and be replaced under the 1 year warranty i got with the engine, bad enough that al this has happened, the radiator got damaged removing it to fault find this problem, so have asked them to replace that, and the cost of oil/coolant /filter etc, this was a reman engine so how coud this be that there is a hole/crack somewhere that is allowing water to pour out through the oil drain plug??
any advice kindly welcomed guys, would be easy for me to tow the jeep to the suppliers but that is a 12 hour ferry ride and then a 1200km drive!! thats the problem with living in australia!!
cheers, gary