The bottom row of head studs/bolts go into the water jacket on the 302. You have to use thread sealer on them. If you did use sealer on them and they are still leaking they may seal up after a couple heat cycles.
I had the same problem, but I ended up having to pull my heads b/c of a mysterious knock. so, when i put them back on tomorrow, i'm going to use permatex thread sealer and from what i hear, that should work. josh
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