Had a terrible weekend, need advice on a crate engine

Is there a reason you have not done a compression check yet? It's an easy check to do and a free rental tool from auto parts stores. I guess I am not understanding why you would spend several thousand on a new engine when it could just be a simple fix that is free or a couple hundred dollars especially when you say how well the engine runs other than the problems you are having which are probably both related

 

I can't answer for the OP's lack of testing or overwillingness (is that a word) to spend several thousand dollars, its a mystery at this point.

What seems obvious to me is the builders offer to buy back the engine . He knows its something stupid and minor and an easy fix. Somebody is going to have a nice high stepping 327.

 

I bought two 350 crate motors from JEGS, fast delivery and good dependable motors. Cost less than what I could have paid a shop to build them.

 

GM crate motor from Jegs was cheaper than Summit for me.

 

Why throw money at the problem with a crate motor without doing a few simple and cheap tests to diagnose the problem?
A leak down test will tell you a lot. Not only will it give you a very good idea of the condition of your engine, it will help pin point where the problem is.
Also do a vacuum test at the port you're using for your PCV.

 

Just above the oil pan on the passanger side there is a crack in the block. You can physically observe water coming out the of side the engine with the naked eye. I do appreciate all the help you have given me and it's great to know there's a place for all of us to come when we need good advice.
But with a cracked block it's kinda backing me into a corner.

 

Let us know which one you go with