Results are still inconclusive. Turns out my coolant pressure tester was leaking this whole time from the plastic nipple that threads into the female brass fitting of the pressure hose. It's a some what cheap coolant pressure test and vacuum coolant refill kit I bought off ebay. When the van first arrived I checked the coolant system to make sure it was holding pressure and it did.
After the initial go at firing her up (before I realized I had no compression in #1) -since I gave my self a faulty reading with the compression tester- I took the hose off the coolant pressure test pump to attempt to fenagle some sort of home built leak down tester from it with no avail. Clearly over tightened the hose back on the plastic nipple with snapped it and compromised the seal... SO that means the pressure test I did after discovering the coolant in the oil could have been faulty as well. Most likely, since it gives the symptom of holding no pressure at all. BUT I'm almost certain the little pressure that I was able to give it was coming out of the oil cap... ANYways I'm a bit confused now. If the pressure doesn't hold with a new pressure tester and the air escapes from the oil cap I'm gonna feel real stupid. LOL. If that's the case, what are the chances coolant is leaking into the oil somewhere inside the head? Is that even an issue, has any one ever seen that? There is no sign of catastropic casting failure anywhere...
btw how much pressure should I beable to put the coolant system under for testing?
Anyways, engine is in everything is hooked up and ready to rock n roll. I'm not putting any coolant in until I am happy with the pressure testing.
Also, Here is some shots of the head with the valves out.
Stay tuned !