As I remember, doing those 20 years ago, the cylinder sleeve is supposed to stick up a couple of thousands above the block. The sleeve just sits in there and is sealed on the bottom by a metal gasket against a flange on the sleeve. The gaskets come in different thickness to adjust how high the sleeve sticks up. The top of the sleeve is sealed when the head is bolted on. If they are sticking up a couple of thousands and the head is flat, I think you are good to go. 60 foot pounds torque starting from the center bolts and working outward, in increments.