Ford Repair: Water in Oil, mustang boss 351, roller tappets

Question
I recently purchased a street rod, 31 Ford coupe, with an early 70's Mustang Boss 351 motor.  Motor is built, 2 4 barrel carbs, roller tappets,crane cam, headers, 10.5 pistons, ect.  I was driving the other day when I noticed blow-by comming out of the valve cover breather.  Upon closer inspectiion, I noticed condinsation.  I pulled the dipstick and the oil was chocolate milk!  Water in the oil.  I drove it home, only about 1/4 mile.  The motor was not missing or running bad. I did a compression test.  All cylinders were between 145 and 155 psi.  No apparent problems there.  I next did a leak down test.  All cylinders were in the 58 to 62% range.  The leak was comming from the crankcase. Seems to indicate normal leakage through rings, etc.  Based on these tests, I have concluded that I don't believe that there is an internal probllem with the motor.  But how is the water getting in the oil?  I was told that on the 351 motor, that the timing cover plate behind the water pump sometimes fails and allows water to enter the motor through one of the bolt holes.  What do you think about this problem?  Do you have any idea how the water could be getting in the oil?  I know this year of car is out of your expertise, but it is a basic question regarding ford 351 motors.  Thanks for your help.

Answer
i would bet that the intake gaskets are not sealing well and the water is leaking into the cylinder heads.  try re torqueing the intake, or better yet just put a new set of intake manifold gaskets on it.  I come to this conclusion assuming your right about there being nothing wrong with the long block.  Never heard of water seeping through the bolt holes, how could water go through a bolt hole if a bolt is in it.