Does this sound like something is screwed up internally?
"... seems to be more 1.6 liter 11 mm heads out there than there are 11mm short blocks...i wonder why "
If you're still not sure and want to be 100% confident the easiest approach is to pull all 4 injectors and then rotate the engine by hand... any interference should then be very apparent since there will be no compression.
had put a reducer in the oil return and built up a JB weld boss on the outside of the head over the oil return and against the headgasket top between tightening