Sorry I forgot to mention that there is an oily white residue in the coolant also. Is there any special procedure on bleeding the system? What I did is had a funnel attached to the rad cap spout partially filled with coolant and after the engine warmed up the bubbles started coming. I talked to the owner and to his knowledge the engine has never been over heated. Someone did mention to me about some oil cooler lines, we do live in a cooler climate. If this is an issue are there pictures or information that I can access?