[Fot] water in the oil

[KENMUN at aol.com]

fot, i just finished a rebuild on my tr3 race motor. i ran it for about 1  
hr. and was very disappointed to find water in the oil. the water appears as 
 drops in the oil on top of the head. there is a milky film inside the 
valve  cover, there was about 1 qrt of water that came out first when i drained 
the  oil. also the water seems to be leaking out at the rate of 1 table 
spoon/day  even though the car isn't running. it has to be the figure 8 gasket, 
the head  gasket or both right? any tests that i could run to find out 
which? the motor is  87mm,10.5/1 cr, figure 8 gaskets with copper coat, liners up 
.004"/.005",  copper head gasket with a sealant. all ideas, tests, 
theories, suggestions  welcome. anyone successfully running the composite head 
gasket with the head  milled to where the intake pocket is removed? thanks for 
the help, ken  m.