Thanks for the excellent link Arthur. My engine is back together and running beautifully. It worked perfect for the first time. No more leaks.
Now I have to tell you my part of the story. The head gasket was done 40k miles ago by the previous owner. but the last two bolts by the firewall were not torqued properly. They almost came out without any effort. The head was properly done at that time and a new chain and guide rails were installed. So my job was just to remove the old gasket clean the block and the head and reinstall the new gasket.I assume that was the reason for antifreeze leaking badly.
I did a 250miles stretch and 50 miles in the city and the cooling system works excellent. Except a hose clamp that I over tight and it snapped loosing few quarters of antifreeze and the nipples from the manifold that brooked.
Thanks for excellent support guys.

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New Addition to the family
2013 Passat TDI 5Miles
2004 E500 4MATIC Wagon 95k
1996 E300 Diesel 173k Sold
1993 300E 2.8 230k Sold
1994 E320 White Wagon 373K Sold
Still dreaming about ....500E


Radu Negru