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Removing the head on a 5 cyl is nothing like the red blocks, it is most difficult.
If the engine is making strange noises, could it be the water pump? When you first noticed the leak, did the low level light come on? These white blocks don't do well without coolant. Please take off the timing belt cover and take a look at the water pump, any antifreeze around it is bad news. Start the engine with the cover off and listen for noise.
You are quite correct (watching too much Top Gear), the coolant should not flow out of the bottle at start up. I have no idea where it is going and why it is coming back when the engine heats up. It makes no sense. A severely blown head gasket would only add air and cause the coolant to bubble, not lower the level.
I would do a compression test before pulling the head. I also would pull the water pump, just make sure the timing marks are lined up before lifting the tensioner.
Klaus
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