Arrgh. It's not over yet. When the master tech went to test drive the car, he noticed that it was overheating. Then he noticed the bubbling in the coolant overflow tank.
Now, it's compression test time, and yank the head to see what the hell is going on. Now I'm wondering about water in the fuel as a possibility for what caused this.
If I'm very lucky, this will be a blown head gasket, and I'll walk away for about $3K, counting the gasket, new injectors, labor, etc...