They checked the surface while I was there and said it wasn't out of spec .
I took the head to another machine shop today . He mag'ed it ; no cracks . He checked the surface and said it looked fine but it is hard to tell when it's warped on the ends . I looked closer at the block , gasket and head . It obviously made very little contact right below the water jacket , maybe an inch from the wet cylinder . There is no sign of it mating in that spot on both the head and gasket , though the rest of the head sealed well . The block deck does not look warped , it actually looks really flat . There are no cracks in the block that I can see , and from the amount of coolant in there it should be noticeable I would think . I'm thinking about tossing a new HG on and doing a leak down test on it .
This has me totally confused and unsure of what to do .