Coolant in my cylinders.

[Z2TT]

No, you deserve pos rep for realizing its time to move on.

[o_man_ra23]

Water should NEVER be in the cylinders. If you EVER get water in the cylinders, then you have a major problem. There are only a few possibilities, first is blown head gasket, this is the most common. The outcomes of a BHG are often a warped head, and sometimes the metal will soften and render the head useless even with a re-facing.

Second is water galleries and ports becoming one. I have seen this happen, but only ever due to somebody inexperienced opening a port too much with a die grinder.

Third is a chronic failure punching a hole between the cylinder wall and the water gallery. This would NEVER give you a compression reading such as the ones you got and is quite catastrophic, though you can still run a motor with with a conrod flapping in the breeze and a piston in the sump (certain RB30 with RB26DE head that I re-blocked ran amazingly well on 5 cylinders like that)

So, at any stage if there is coolant in the cylinders, it means either pulling the head off (which you should do anyway to find out more about the internal workings of an engine) or new engine. If your going a bigger motor, the 7M is the one to avoid. They just have waaay too many BHGs to be reliable (even once you fix the head bolt tension, the head may have previously suffered too much). 1JZ is the practical alternative.

Good luck with the conversion, should be enjoyable for you.