Ok, I want to throw a theory out there and get some opinions on it, I was thinking back to when I had the rear head off and I'm thinking I may know what is going on with the water getting into the exhaust. One of the dowels was recessed in the hole, I should have known better than to overlook it, but after reading I got to thinking maybe because that dowel wasn't holding it exactly where the head needed to be that even tho I tightened the head bolts down that it may have been just enough out of place that when I put the lower intake on it wasn't tight enough on the intake gasket and since coolant flows through that lower intake that it is sucking the water into the cylinder through the intake valve as its supposed to be sucking air and gas mixture. what do you think?

And the reason I say this and not the head gasket is it runs damn good, which means the compression is good, but it would still allow water into the cylinder, I bought a endoscope tool for my android phone, when It gets hear I'm going to add water and run it until it gets to normal, then taking the upper intake off and slide the endoscope down the hole and check for water.