wow, there is a LOT of discussion in there. Tony D states more holes open the better , think that was the gist of it.
I maybe getting ahead of myself here, will post up some videos of what I have and have found out. later.
Good news is the bores look great, and the head has less than .003 and that is only at the very end, not the middle. I still have to clean up the head surface, so that may even be false as I may have some residue left on that side. I did a diag check full length was about .002. Using gasket remover and plastic razors for the head, coming out well.
other issues, the rust accumulation is horrific, I mean like mud like and a lot of it. the block also had one head bolt on the manifold side that fought me all the way out, the rest had nice break away feel. the one that was trouble as the rear dowel hole bolt. Lots of rust. I am pretty sure its a blind hole, so not sure how water could have gotten in there. There was evidence of a brown rust water stain on the side of the block right by this same bolt. Also the fire ring did not have the nice clean space between it and this same area. My guess is the exhaust gases were pushing past the ring and opening up a path from the water jacket, bolt hole, and side of head along the bottom of the gasket. that is what I think i was seeing.
I bought a thread chaser to try and fix the bolt hole, have a super scraper on the way for the block. I am going to have to pull the engine of the test run stand and either get a shop to hot tank it, if they still do that, or I will pull the freeze plugs and see how much mud I can dig out.