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What's really strange tho is that this problem came on with no recent changes to an here-to-fore good running engine.
When you're dealing with 50+ year old iron, nothing's strange. Picture this scenario: You have an engine that's been nothing but good for several decades, then you rebuild it. Now, it's been through thousands of hot/cold cycles, and the iron in the block has expanded and contracted those thousands of times. If there was a thin area in the block somewhere, that was made even thinner by boring/valve job/etc, it's entirely possible for it to crack. The stud holes leaking makes me lean more toward a head problem, like cracks in the bolt holes, places where you can't magnaflux. But here's my true gut feeling on the situation: Your deck is bowed. Either in or out, but the block deck surface is bowed. Probably right down the middle of the block. How did it get bowed? Probably all those heat cycles. If that's not what it is, I'm at a loss, but I'm 99% sure it has nothing to do with the head at all.
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