Yeah it sounds like a possible gasket problem. Also, as far as the ticking sound and smoke from #7 cylinder, make sure the spark plug is tight.
Jason
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2003 Satin Silver Cobra (12.47@113.6)
1989 GT Racecar (11.0x's on motor and an aborted spray run of 10.27)
1997 F-350 Powerstroke
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