I am now convinced that these motors are garabage. After this rebuilt motor getting way hot in about 2 miles and now water in the oil its over I am throwing in the towel. Will someone please tell me why this old technology is so sought after.
Yo, flatbed...I am the 'garbage' collector, if you're truely done

!
No offense intended, but you sound like a youngin , as in..i want it now,etc.. Sounds like you have hung in there and spent plenty of money/time/effort on your vehicle thus far. Sounds like a little more patience will make you a winner..over this old iron/technology.
Long distance, it's hard to be a good helper, but I've read your stmts closely and here's where I'd go from here:
You say..'ran awesome for three wks' then trouble (i.e.- puking) To me this most importantly points up HEAD GASKETS to be checked first. Second clue pointing to head gasket failure is water in places where is ain't to be. You never said, but what checks did you do: foaming/bubbles in radiator; compression test each cyl; see which plug has water on it after short start up....all/any these easy/quick checks may reveal/suggest problem/solution. You've already given us that you had radiator cleaned/whatever..so that can rule out (for now) overheating..and it ran great for THREE wks as evidence of this. Ditto for three wks on dizzy/pumps/whatever. Ahh, but three wks...may be just about right for a poorly fitted/manufactured/torqued/whatever head gasket,eh !
Makes me sick, that is ..shelling out enough $ to do a flaty when cuz spends one third to buy a complete bowtie crate with twice the juice.
Now back to your original question re: sought after;
But, when youse grow up (back to age of user

) with the smell/sound/LOOKS of flat tech...how do you put a $ amount of love of that?
I don't know squat about tech specifics, like Ron and others here, but I know what I like...and that's why I AM THE GARBAGE collector!
Let us know what you find.