I had similar issues. Orings in head, no groove in block. Water passages didn't want to seal, so i used 100% RTV silicone (like you get at Homedepot). Works great, but you have to watch where you put it. Not too thick and remember the shape of the passages in the block are not the same as the gasket and those are not the same shape as those in the head.

BTW, I tried the SCE gaskets, and they leaked. the thickness of the bead of sealer they put on really wasn't very thick and my heads are not that smooth. After one use the sealant was gone anyway.

Tony