There are many signs - is the engine leeking water/oil out of the join between the main engine block and cylinder head ?
Can you see oil mixed in with the coolant ?(colured rings etc)
Can you see water mixed in the oil ? (White foamy substance on inside of oil filler cap and/or on dipstick)
Once the engine is warm, is it producing black smoke - a sign of burning oil. Or is it producing white.gey smoke - a sign of burning water. (your water and/or oil levels will go down quickly)
Any of these problems will point to a leaking head gasket or other serious problem that will probably need the head off anyway.
Get the cylinders pressure tested by a garage or mobile mechanic - they can tell a lot by the results. Only about 30min job to test.
Dave W
May 2004