Okay, so I finally got time free enough to pull the head again and inspect
(engine still in the van). The culprit...me.

When I installed the head after replacing the gaskets, I was rushing the
job and the cylinder sealing rings slipped down and out of position and
didn't notice that I crushed them while installing the head. Therefore,
sealing rings not seated properly, exhaust gasses reached the green o-rings
destroying them, allowing coolant into the combustion chamber and out the
exhaust system. So, mystery solved.

Unfortunately, when I pulled the head the 2nd time to inspect, I wasn't
careful enough and allowed the sleeves to slip off the piston rings. Very
sad.

As with any Vanagon, its a matter of time or money and I don't have any
block of significant time to pull the engine and fix this (not to mention
other projects I have waiting for my time). So, I towed it off to a local
VW shop in the area to have the job done right (big check in hand). I would
have loved to have found something like a failed component or cracked head
or similar, but I've only got myself to kick for it. Just glad I wasn't
rushing while doing something that could have got me hurt (trying to insert
a postive spin on a bad experience).

Thanks to everyone for your guidance and troubleshooting to focus on the
right areas and another learning experience with my van.

Gregg

On Wed, Jan 18, 2012 at 4:36 PM, Dennis Haynes <d23haynes57@hotmail.com>wrote:

> As another possibility I had a van towed in with all of these symptoms.
> Since it was a running engine my first thought was broken stud. None found.
> In fact all were at torque. Compression and leak down poor on cylinders 1
> and 2. #1 intake valve leaking bad. I am suspecting a cracked head.
>