Coolant in the oil is obviously a problem. I tried to explain where it is mixing but I guess I didn't make myself clear. $700 also includes the timing belt job. I do my own work usually but I am new to the Supra and I don't have tools for the timing belt anyway.

I'm bringing it in on Tuesday. I'll let you know if it is still mixing after.

I was responding primarily to statement:

It came off to me as saying that it doesn't matter that the HG is probably leaking and that after fixing the external leak you've found you're just going to be done with it and hope that fixes everything. From what the picture I've got in my head of what's going on that's just not going to happen and you're just going to end up paying for the labor of removing some of that stuff twice when you have the shop replace the HG next.

There is no way for coolant to enter the oil system and make the oil look like pudding that isn't internal and isn't bad. It's been a while since I've had one apart but I'm pretty sure that none of the water pump fasteners run all the way into the oil galley. So if the oil in the pan is getting contaminated you've still got a bigger problem than just the missing bolts. Drain the oil and look for water/coolant separating or see if it looks like chocolate pudding. I don't know if you're understanding this, being hopeful or if it's just a little more confusion and miscommunication on all our parts but I'm repeating it the one last time. I'm just trying to make sure you have all the info you need to make a good educated diagnosis. Please don't think I'm trying to be rude.

Went to she shop today and saw my Supra in the air. Stopped in and he has it all taken apart and he was right. Just that gasket. He showed me how it was leaking straight down into the oil pan. He also showed me that the car actually does have a MHG that appears to be working. The car will be done tomorrow and ready to go. I plan to run it a few miles and change the oil and filter again.

I am happy that there is nothing else wrong and I didn't have to go through the headache of replacing the HG or anything else. Once I get it back, I hope to upload some pictures and write a description of the things that I actually know about it :P

Thanks again!

If you could get the part number for the gasket from your mechanic I'd appreciate it. Even looking at the Toyota EPC I can't figure out which gasket could allow a leak between the oil and coolant circuit. I've stripped more than a few of these engines and rebuilt a couple and I'm stumped. This is a 7M and not a 1JZ or 1G, right?

I'll get the part number for you when I go to pick it up. I wish I got a pic of it to post. I thought about that when I got home. Yes I have the 7mgte...I can't find anything helpful to show you on the internet.