Is your oil milky? Are there signs of tranny fluid in your radiator? Does the engine run hot?

It sounds like you've blown a head gasket, or cracked the block, as those are the only two ways you're going to get coolant in the cylinders. If there's tranny fluid in the radiator, then the cooler inside the radiator is damaged.

You need to run a compression check on each cylinder, and post the results. That will tell you if you've blown a head gasket.

Good luck.

Take care,
~Chris

I wouldnt use the radiator sealer. From what I understand, the only thing it is good for is clogging the internals of your radiator and restricting the flow of the coolant.

Problem solved:

Exhaust was being caused by a valve off the tranny vacuum spewing tranny fluid into the exhaust and the loss of anti-freeze/over heating was due to warped thermostat housing. Score.

They used a vacuum modulator in 1989? I didn't know that.