One thing that occurs to me is that if coolant is leaking all around, there has to be something major wrong. Even if you put the head on with NO gasket and torqued the bolts/nuts, it should not do that. This leads me to believe that there are some more drastic problems than a 20 ft-lb difference in the torque. How clean was the head and block before you reassembled? Leftover material from the old gasket could cause this problem. Did you put the head gasket upside down? A good possibility on many engines. Did you check the block and head for flatness?
In my lifetime of experience of working on engines, I have never seen a head gasket leak like that. I highly recommend that you take it apart and find out why you are having this problem. I just don't see retorqing bolts will fix this. Keep in mind that those engines ran just fine for years at the 65 ft-lb torque and did not pour out coolant. The higher torque value came along later after engines had been in service and began to "show their age" later in usage.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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