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I've had nothing but problems with a 400 rebuild. shop did the work (twice) and I found oil residue...the white congealed stuff in the rocker covers. I've removed everything but the heads and have seen that the rear cooling channels on the heads have the same white congealed stuff in them, the fronts are very clean. I had a real problem keeping coolant in it and it seemed to be losing oil also. I'm going to remove the heads next weekend and am looking for any thoughts on what I should be looking for.
The build included a new rotating assembly, pistons, bearings, etc. They broke a drill bit off in one of the heads when they were drilling the additional cooling holes, but they said there wouldn't be any problems....WTF?
Anybody have any thoughts on this?
First check the head gaskets for signs of leaking from oil to water galleries. If no evidence of gasket damage then I would suspect insufficient sealant used on the head bolts allowing cross-contamination of oil/coolant.
Moisture in the engine makes the white sludge. Are you sure that you have excessive contamination? Pull the dipstick and check for moisture or drain a bit of fluid from the oil pan to see the extent of coolant. You can also check the coolant reservoir for evidence of oil. If you have a problem it will be obvious.
Multiple short bursts of engine operation in a cold climate will give you some sludge because the engine temperature doesn't get high enough to remove the moisture. If this is the case; then you need to ensure your trips are longer!