Och man that sucks. Did you have the engine and heads decked? If not, from what I understand, Ford's talorances are very minimal at best. So you would have to have a machine shop deck them so that they are flat and true all the way and yes you can reuse the head studs. Thats not a problem. I think that decking the block will fix the problem.
Yes the heads need to be milled. They should be milled any time you take them off. I know there isnt a lot of room for play so have the machine shop make sure they are still within ford specs.
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