Engine Failure? Need your advices

[myrtille2004]

I tried to start my engine today, and got a surprise. It was difficult to start-up (like my starter was jamming up). I finally was able to start it, and a cloud of smoke came out of the exhaust. I run it in the 4000RPM, but still was smoking a lot. The idle was not stable at all, and the engine died. I tried it a second time, was able to start it, but again a cloud of smoke. I noticed in my garage and driveway a flow of liquid coming out of my exhaust... like a river. I look at this dark brown and yellow substance, and looks like coolant. Am I dreaming of the engine block is cracked? I cannot see how a gasket leak can let out so much coolant for 1-2min running. If you have any idea of what it can be, let me know. I think I will need to pull out the engine and tear it down, is this my next step?

My engine is a 302 old iron block machined to 347, but everything else is brand new including the dressing (new pistons, rods, camshaft, heads.) I'm guessing that is must be the block, the ONLY thing I re-used from an old Mustang.

I have attached pictures to comment.