Tractor Repair: 1086 IH Head Gasket, head gasket, vent tube

Question
The 1086 started to run hot then was blowing steam out of the valve cover tube. Shut her down and let her cool. Went back and checked oil and had water in oil. Dumped oil and lots of water came out. Checked radiator and oil was present.
Tore tractor apart removing head. Seen no cracks and am having it checked at napa to make sure it is true and no cracks.
cylinders were dry and not washed carbon overed. Exhaust ports were dry also. No water present. Some one told me because of the steam coming out from the vent tube on the Valve cover that the engine is toast? I believe it is just a head gasket? what is your opinion?

Answer
Hello,

  Sounds like a head gasket to me, but there are a few other things to consider.  Water in the oil could be a head gasket, cracked head, or cylinder sleeve pitted through or sleeve o-rings leaking.  Oil in the radiator is usually the oil cooler leaking internally.  I think steam coming out of the breather should be expected when there is lots of water in the crankcase where it doesn't belong.  It isn't a sign that the engine is junk.  As long as no cylinders are scored, it should be OK.  If the head is found to be OK and if the old head gasket doesn't look blown, I would fill the block with water and remove the oil pan and see if any water drips out around the cylinder sleeves.