Greetings all,
Well, I'm pretty sure I found the problem with the engine. I was tearing it down to check the sleeve and generally inspect it when I found a nice little crack in the case. I've applied JB weld to the crack and I am going to seal the back plate with high temp RTV. I am hoping that the JB weld is going to be sufficiently strong to hold up. It will be a nice experiment anyway. Here is a crude drawing of the crack. Maybe you all could give some input as to Whether or not you think JB weld is going to do the job. I applied it on the outside rather liberally and on the inside and back sealing surface I applied it in the crack and wiped away all of the excess.
Jake C.