water in oil after heads swapped

How about an update... After taking off the intake again to inspect, I discovered that the tbi intake runs water completely through its bottom, using the rear and front water passages from the heads. Alas, there was no problem there. I decided to remove the heads and look for something I did wrong. First, I checked torque on them and they were right. So off they came. I really, really looked them over but could not find anything out of the ordinary on the block or heads. I was using Victor gaskets instead of Fel Pro blue and wanted to blame them but again, nothing out of the ordinary. So there I was, annoyed and frustrated because I could not accept a cracked block, when I decided to take the water pump off since there were only three bolts still holding it on. Upon inspection I saw an 1/8" inch hole in the upper part of the timing cover behind the water pump. After poking at it with a small screwdriver I concluded that it was solid. Using an inspection mirror and flashlight I looked in the left and right block passages and saw additional 1/8 holes but couldn't get a screwdriver to them. After pulling the cover and cleaning it up a bit on the inside, I started poking at the holes but they too were solid. Crap! Since there was no problem there I continued with cleaning the cover on the outside and the inside. It was looking better but the inside block holes were real grubby. When I started scrubbing with the steel toothbrush it got grubbier and grubbier. Low and behold, the aluminum was disintegrating on the inside at the block end of the timing cover. WooHoo!! So I am now wondering if the 1/8 inch holes are a sign of aluminum disintegration and a red flag to look closer at the component. So thanks to those that responded, I appreciate the thoughts. I made this a bit longer so that it might show up in a search about corrosion, blown head gasket, cracked block, water in oil, etc. Tomorrow I will go to the Upull and find another timing cover and all should go well. Will update that all is well when finished. dan...