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I put a product called Chemiweld in the radiator. It is made in australia and costs $10 for a container, which can treat 8 - 12 litres of coolant.
Basically you just drain the cooling system, fill it back up with water, get the engine warmer than usual, add the chemiweld slowly and let the engine idle warm for 20 minutes. Then after driving for a while flush the cooling system and put normal coolant back in.
I did this, and found all the vapour and smoke has completely stopped coming out the exhaust. I have driven a total of about 50 kms so far, with no problems. The engine actually runs with more power than before. One thing that has changed however is the oil light does not come on at all now when the ignition is turned on and the car is started. The oil level is fine, there is quite a bit of water mixed in with the oil and i wonder if this has mucked with the oil pressure sensor.
Its an interesting study anyway, and for anyone who has an old engine not worth fixing, you may like to see how long this 1988 4AFE lasts, I will keep you posted.
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