Can any engine pros out there eval these pics for me?

So I pulled my head this weekend for what I thought was a leaky HG. Turns out the HG looks to be in pretty good shape. I'm probably going to take the head to a machine shop to check for cracks. Hopefully the block is good.

Anyway.

Question #1:
The pistons and valves have a fair amount of carbon build up, but the intake valves have a shiny clean ring around the edge and the intake side of the pistons have clean spots for the intake valves. Does this mean timing is too advanced (Shrick cams) and I'm getting slight valve-piston contact?





Question #2:
This engine was rebuilt 25k miles ago... Does this seem like an excessive amount of carbon build up?



Question #3
Below are pictures of the HG I pulled off. The first is of the block side. The 2nd of the head side. On the 2nd pic in the lower left hand corner of cyl 2. Could that water passage be escaping into the cyl?





Thanks