Intake Leak

When the intake is sitting on the block without the gaskets installed there is no space from the bottom of the intake to the block's china wall. And there is .012 gap between the head and the intake. But when the gaskets are installed there is 1/8th. inch of space under the intake.
The locator pins don't bottom out in the intake either.
The bolts thread in by hand when there isn't a gasket installed.
This has got me stumped.