Thread: cracked head or head gskt???

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RTV has no place on threads. I use teflon pipe thread paste on my head bolt threads because it provides lubricant for better torque values. Everything else threaded gets Aviation Form-a-Gasket. Water through the head bolts wont cause your problem, though, unless you already have a blown head gasket. Run the engine for a bit and pull the plugs. If you have as much water coming out as you say, one plug will come out cleaner than the others or yellow and that is the troublesome cylinder.