We own a 2001 discovery and our problem is that it uses coolant and does not appear to be leaking anywhere, IE the water pump or hoses. My question is are these V8 engines prone to head gasket problems.

 

They are indeed very prone to head gasket problems. The coolant that came with the truck, when not changed frequently enough turns highly acidic and can eat the head gaskets.

 

Have some one fill and bleed the coolant system, then have a coolant pressure test done to find the leak.
If unsure about the find and the estimate, get back to us.

 

We also heard that the sleeves can move in the block after an overheat, can this be fixed? If we remove the heads can we see if the sleeve dropped? I know I will have to have the heads checked. Thanks for the advice.

 

If you dropped a sleeve, you will have huge amounts of coolant in the oil and the engine, for the most part won't start.
Don't drive it, find a shop, check it out and if it is the head gaskets, don't pay more then $1400 for the repair plus any side issues.

 

We haveremoved the heads from our disco and so far havent found a smoking gun, ie the sleeves are in place and the head gaskets do not show the normal signs of of head gasket failure, although one cyl has moore carbon build up than the others,Could this be the bad cyl as it is next to the fwd water port. While inspecting the engine I noticed that the heads and block only have coolant pasages at the ends of the cyl banks. So if the gasket failed it would have to be at the ends near those cyls. It does not appear they have leaked there.I also have coolant in the oil. I have taken the heads to be checked for cracks and valve job if no cracks are found. Are there any other places water can enter the exhaust and crankcase that I havent found or seen other than head cracks ( the sleeves look to be OK)?