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Background: 1995 4.6 149000 miles. Coolant loss for some months with no overheating but significant back pressure in the system. Test kit showed combustion gases in the coolant so I was planning for a headgasket job (at best) or a slipped liner (at worst). Things were brought to a head when the back pressure blew the top hose off the radiator.
Solution: Decided to try Steel-Seal on recommendation. Bought three bottles which is the recommended dosage for a 4.6 litre engine. Instructions said identify which cylinder is causing back pressure by removing each spark plug in turn. Fortunately found it at the second attempt. Introduced Steel-Seal into the coolant and ran engine for 60 minutes with that spark plug removed. (Makes a hell of a noise). Left to cool overnight.
Result: Back pressure completely eliminated, which showed the product had been very effective in sealing the head gasket, but there was still some coolant loss which I attributed to getting rid of airlocks. However, after a couple of days I noticed a large splodge of grey liquid over the front of the engine and on the ground. It took me some to trace this to the small weep hole in the front of the water pump which indicates a failed bearing/seal. Fitted a new water pump and flushed the system throughout. No more coolant loss. I wondered if the Steel-Seal had forced its way through the bearing but I've come to the conclusion it was probably leaking before but had not been so noticeable. Vent line from top of radiator remained clear with trickle of coolant into expansion tank but decided to remove thermostat to check for any residue inside. There was just a trace of gray product in suspension. Also removed radiator and flushed out some small lumps of soft product.
Conclusion: Steal-Seal seems to have done a great job in this particular situation and I found no evidence that it blocked anything else such as the thermostat, radiator core or the radiator vent line.
 

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It does knack your water pump. I tried it on mine. Result was it stopped a small water loss but it wrecked the water pump (6 months old) straight away. My thoughts were that is stops leaks etc but it wrecks the bearing seal on the water pump. I kept the old water pump in case i need to use the sealant again and i'll swap the pumps over first.
 
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