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Head is not that bad...water is in the heat crossover due to drilling the exhaust stud too deep. Spoke with several shops today and we all agree no harm in letting the water be in the heat tube..going to block it off at the manifold with a stainless plate under the intake gasket..should seal the water out of the intake and Im good to go..will keep everyone posted on how it works out..thanks
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Heat cross over is on the intake side, exhaust mounting flange well thats on the other side, I'm guessing your speaking of the exhaust rocker arm stud

I would fill the heat cross over with epoxy if this the case.