Okay, I fixed it and I did not have to remove the head. I bought a new gasket from Kubota for $1.80. I took a hammer and chisel and broke the old housing at the bolt hole. Then I took a hacksaw and cut the head off of the old bolt and used a pair of needle nose pliers to remove the old bolt. I took an identical sized bolt and put a nut on it and then using a grinder I ground off enough of the bolt so that it would fit into the space between the front of the head and the rear of the water pump housing. Once the bolt was short enough I took the nut off to "fix" the threads from the grinding. I then put the new bolt into the appropriate bolt hole and then placed the gasket onto the bold and slid it into place. I lined up the other bolts and threaded them into the head but did not tighten them down. After this I used a flat blade screw driver to push the bolt against it's hole and then got it to start and tightened it down. I think its being held by 4 or 5 threads but it tightened and once the others were tight it does not leak.
Kind of a piss-poor design but I'm glad I was able to make this repair without having to pull the head.
All in all the job was a success, I just wonder how long it's going to stay together since I replaced a piston & rod from another engine - but I did use the same bearings so maybe I'm good...
Thanks for this rjglenn!
It seems the PO neglected the coolant system, on the new to me RTV.
The radiator and overflow tank were full of rust. Instead of trying to work with it I replaced the radiator, tank, hoses and thermostat.
Crossed my fingers (hoping that this would be it) during the test run I noticed water seeping from the side of the thermostat housing. Crap...there is a hairline crack the entire length of the housing.
Not wanting to pull the head, until I am certain its necessary,I decided to try rjglenn's approach with a slight twist.
I drilled a hole through the T housing flange towards the mounting screw, behind the water pump. Using a center punch I struck and broke the flange.
Next I cut the screw with a sawzall.
There was no need to custom cut a screw to fit, the local True Value had the correct length screw.
Yes it only provides 3-4 threads to screw into the engine but this a fly weight assembly and there is not a lot of water pressure there.
I just need it to work long enough to determine if there are any other engine issues.
BTW I was surprised to see a hose washer inside the head, where the T housing bolts up.
Wish me luck.