Where did you buy the engine? Heard some bad stories about those reconditioned units.
I rebuilt one of those engines myself. All the points I was going to make have already been said so have them all investigated.
Check the vac pipes with this.
http://www.4x4toys.co.uk/images/4x4/tech/vacuum/vacuumhoses2lt.jpg
Buy a snif tester to check for exhaust gasses in the coolant if you still can't find anything.
I rebuilt one of those engines myself. All the points I was going to make have already been said so have them all investigated.
Check the vac pipes with this.
http://www.4x4toys.co.uk/images/4x4/tech/vacuum/vacuumhoses2lt.jpg
Buy a snif tester to check for exhaust gasses in the coolant if you still can't find anything.