Thanks Neil, 

I have a video but for some reason it is not letting me post here my video probably to large of a file size.  I posted it to Youtube. The bottom line is I know for a fact that one of the head bolts is not torqued down to 300 ft lbs.  It is at #1 and it is where the eye is located to lift up the engine from... I went ahead and ordered a new torque wrench and am not moving it until I re-torque the head... If it is way off I will pull the other valvle cover off and re torque 456 head as well... Seems to me like it could have been the problem but we will not know until I get my torque wrench.  Those nuts any idea on exact size?  Cross my fingers... I used a 29mm open wrench and could move it back and forth the nut that is and she was puffing from there when I started her up..... Here is a video of above...

29mm divided by 2.54= 1.142 inch......looks like an inch and 1/8th...

-doesn't look like 300 pounds torque on that one...hmmmm....might be a good idea to check the torque on the other head as you say..

Hi, gvanhouten.
Unless they numbered the cylinders backwards on the D353 motors. I think you would be looking at number 6 cylinder there as that appears to me to be the rear of the engine.

Also. I doubt that loose nut in your video (as distinct from the one typing this post) will not be part of your problem. Unless I am completely misreading your video, that lifting lug is there to help in lifting the head, which means that the stud to which that nut is attached would have to be anchored in the head only and not go down into the block.

Just my 0.02.

Hi Deas,

Appreciate you looking at the video and yes I believe that is #6 not #1 however that lifting point bracket is there and where that nut is there is vapor or coolant droplets comming out under the nut.  I do believe it needs to have the torque value of 300 ft lbs + or - 10.  We will see either way but I do appreciate you looking at the video and sharing your thoughts.  

That lifting lug nut/stud can't go down into the block or you would have to remove it to take the head off. Then you wouldn't have anything to lift from.

Can't hurt to tighten it up anyway

Hi, gvanhouten.
You may find that the lifting eye stud hole goes right through the head down to the head gasket, which would explain the 'stuff' coming up around the nut. I would expect it to be a stud threaded into the head. The nut being loose may also indicate that the stud is loose on its threads, which could also leave passage for said 'stuff' to come up past it.

Just my 0.02.

If you look at the parts book you will see those corner (engine) studs are extra long to pick up the engine lifting eye. The lifting eyes are for the engine, not just the head.

Hi, Old Magnet.
I stand corrected. Are they also part of the head stud pattern requiring torquing down with the rest of the head?

Just my 0.02.

Yes, all with an eventual torquing of 300 +/- 10 ft.lbs.

-does the stud itself turn or move? or is it tight in the block? if it is loose or is easy to loosen, maybe remove and check condition of stud? if doesn't want to remove easily then i would probably leave it alone and not fight it.

-if all looks good, re-install with some kind of lube/sealer ( i like copper-kote) and then torque stud into block
-not sure what torque is recommended for the stud itself, but usually it is surprisingly low (in my automotive experience anyway)