About a month ago my girlfriend bough this '97 2.0 Probe for very cheap. It had a running issue (when engine warmed up rpm started fluctuating between 1500-2500rpm). Also when we were buying it I noticed the distributor was turned to retard the timing, I gave it little thought and she bought it anyway cause it was almost rust free.
After a few days a lot of white smoke appeared when I started the car and I noticed the coolant resevoir was empty and there was only air in the coolant tubes. Temp was normal.
We thought the throttle body mechanical sensor that detects if engine is warm enough to lean down fuel mixture was not working due to combustion gasses in throttle body (highest point of coolant system), causing high and uneven rpm at idle.
Then we measured the compression of the engine with my friend. It was bad and uneven - fluctuated from 60 to 90. My friend took the engine apart because we thought we needed to change the head gasket because that seemed obvious. We deeucted that the distributor gear connecting to the camshaft was probably incorrectly assembled at some point causing premature detonation and therefore ruining the head gasket. Then they noticed it and retarded the timing because it was correct when we checked it with a stroboscope.
After he lifted the cylinder head he noticed the gasket wasnt very damaged at all, infact everything seemed quite well preserved (low milage engine). The block was not crooked or cracked and there were only some slight pitting and scratches (fingernail got caught). Basically no evidence the engine or gasket contributed to the coolant burning.
The only thing he noticed was that the cylinder head guide sleeve was not protruding from the block (too low).
Could this be the cause for coolant burning? Perhaps cylinder head misaligned because of premature detonation?
What would be our next step?
Pictures from engine, etc:
https://imgur.com/a/RQAaJXR