I have an 1980 C 30 with the same 5411 2 cyl. Universal diesel & they all make a lil "steam" or whitish smoke at start up. This is just symptomatic of a 30 year old engine. If U have enough compression for the engine to start, the it is working. The true way to rell if U have a cracked head gasket it to examine the oil - if its milky the the head is leaking raw sea water into the oil - bad news. If it is normal then you're fine. Just make sure as noted above that you're flowing raw water over the stern exaust. This engine has some quirky exhaust plumbing. It flows through a seperately plumbed exhaust line to a thermostatically controlled line, which prevents raw water discharge until the engine warms up, & the opens the valve to allow raw water discharge flow. This can look like a failed water pump impeller, when it is not. It also creates the whitish smoke, as the exhaust is not initilally being cooled by raw water fllowing through it. I closed the loop on mine & the water flows directly to the water muffler, as in the Yanmar diesels. The engine will run a lil cooler, but that's not a bad thing on a 30 year old engine. Universal put the thermo in to allow it to warm the engine faster & make the operating temp. more efficient, but it is more important the it runs cool for longevity. As long as you've got water flowing through & out the exhaust youre fine. This engine is strictly raw water cooled & has no heat exchanger, unless modified later.