Just a few comments on pressure testing :
Firstly, I must admit I have never pressure tested an engine block but I have pressure tested lots of industrial pressure vessels and steam boilers.
Pressure testing is always done with a fluid (usually water) as it is non compressible. If there a leak, the pressure is lost immediately and can be seen right away.
Using compressed air, the pressure will not drop much through a tiny crack. It does not reveal anything unless it is a big leak.
After completely filling the vessel, we used to use a hydraulic hand pump to pump water in and get the pressure up. If you don't have one, I would have thought mains water pressure would be probably enough, it is usually 50 psi+ . Just put mains water pressure on the jacket, get all the air out, then valve it off and see if it drops, normally over a period of 2 hours.
Edit: Just read your other post and I see your engine is all back together so a bit late with this.
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