Yes,
Sounds like your car has a cracked head. They tend to crack "inside"
where you can't fix them, at least very well. I did have luck fixing
one of my 18GB engines with some very powerful expoxy (yes, its a bit
hoakey) called "JB WELD". It worked but I always was fearful.
The best bet is to get a used head, install bronze valve guides, new
valves (to handle unleaded) and your're set. Incidentally, I don't
recommend swapping heads from different years as this can radically
affect performance (compression ratios changed in later years.)
If you are losing that much coolant through the engine DO NOT RUN IT!
You can really destroy what was left of a half-running engine that
way.
Incidentally, don't let anyone talk you into "welding" the head. (Been
there, done that.) The head, cast iron, does not like to be welded.
You first must preheat the head in an oven (industrial), then "v" out
the crack (if you can see it) and then weld it with a special arc
welder and rods. (Not for the weekend mechanic or faint of heart)
Odds have it that you'll probably crack the head worse than it was.
It has been my experience that "B" heads crack do to a characterisitc
design flaw (most crack on the two inner cylinders.)
With regard to setting the valves on these early "Bs" you can use this
trick. On the fender wall, near the fuse block, there is the starting
solenoid. You will note it has a rubber boot. If you first remove the
coil wire, you can depress this boot and it will cause the starter to
turn the engine. This will not work with starters on later models
which have the solenoid on the starter itself. But, for those
fortunate few who have early "Bs" it is a handy way to set valves and
such.
Matt Silveira
Sacramento, CA
P.S. Anyone know where I can pick up a rust free, 65-67 "B" convert.
with or w/o OD and wire whls.? I would prefer a "running basket-case"
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