Hi David,
since your trans shifts well cold.......and maybe it's not 'real bad' yet
syncro-wise, you could try different gear oil.
Redline MT-90 or MTL both help shifting - the MTL a little bit more I think.
MT-90 is the one normally recommended for vanagon transaxles though.
But you could delay the trans reubilt possibly with different gear oil in
the short term, if you wanted.

you might also enjoy checking how much metal there is on your magnetic trans
drain plug. Sometimes it's a frightening amount of metal shavings.
I've found a marble size 'golf ball' of metal on the magnet to be not that
unusual.  Not nice, but not that unusualy.

on the head gasket leak.
Look at the upper sides of that head, or the heads, and see if it's an AMC
head or a VW one.
The reason I say this is because I have seen some AMC aftermarket heads that
squeazse the outer rubber water gasket too much, pinching it, causing it to
want to leak there after a while, or it it ever gets overheated.
  Just saying, when you have that head off.......at least I find it
important to pay particular attention to the compression of the outer water
gasket. I've seen them be just right, too big, too small, and tilted -   The
later 3 of which won't work very well.

Welcome to Vanagon ownership !!
they are a real trip, and once sorted out and repaired properly ......they
are just awesome.
Scott
www.turbovans.com

----- Original Message -----
From: "David Cohen" <Mtbdavid2@AOL.COM>
To: <vanagon@GERRY.VANAGON.COM>
Sent: Sunday, September 27, 2009 2:51 PM
Subject: advice on tranny rebuild and water leak on 1990 Vanagon GL

> Hi all,
>  I recently purchased a 1990 Vanagon GL from San Diego via  Craigslist.
> The van had a slow water leak since I purchased it but wasn't  sure where
> it
> was coming from until I filled the overflow tank and opened the  coolant
> tank top, all the coolant in the entire van poured through the middle
> bottom
> of the passenger side head.  Front the research I have done it  appears
> the
> water jacket seal has failed.  Supposedly the engine has been  rebuilt but
> has no paperwork to prove this.
>
> I am looking for advice on what should be replaced once the head is pulled
> off.   Also, the third gear syncro appears to be going.  After  the tranny
> fluid heats up its grinds in and out of third gear.  It doesn't  grind
> when
> the van is cold.
>
> Bye the way, I live in northern California, SF bay area and am looking for
> a recommendation for a place to have the tranny rebuilt or exchanged.
>
> I am also looking to purchase new exhaust and muffler for this van as the
> current setup is completely rusted.
>
> Thanks,
> David