are you seeing coolant in the oil? what color is it and is there a slime on the underside of the oil fill cap?

no craby there's no coolant in the oil. Never did the visual on the plugs to see if they're were wet or had any kind of white ash look to them. It's at the shop and I'll let you know tomorrow. Thanks for all the help guys. I really do appreciate.

Glad I saw this thread. I have a 99 Z28. My low coolant light is on and the fluid levels are perfect and the temperature is solid but it was driving me nuts. I was guesdding the sensor but I'm more confidant after reading this but just for general purposes how do you use the bleeder valves to release air?

are you checking the radiator or the coolant resovor? not sure where the bleed screws are on a 99 but they are little brass screws on mine. one on the thermostat cover under the tb and one on the heater hose by the alternator. the lt1 also has one under the tb. you want the motor cold, car on a hill with the front on the up side, then open the radiator cap and if its not full fill it. with the motor off open the bleeder scews untill you get coolant coming out. the one on the hose by the alternator will not beed till the motor is running. once you get fluid from the lower ones close em, fill radiator and put cap on, start motor and open the bleeder on the hose until fluid comes out. ok now take it for a drive around the block and do it again.

Well it was determined that I've got an exhaust leak after the dye test was done. Going to have the engine torn apart and gone through. Many thanks to previous one owner!

It turned out to be my low coolant sensor. I had it replaced this morning.

an exahust leak is causing your coolant level to decrease???????

I'm curious as to where they introduced dye to see an exhaust leak and how that is related to coolant loss?

Me too. That is an interesting one. I'd take it someplace else and walk away from that shop....forever.

if hes getting exhaust gasses in the coolant it would indicate a leak of some sort.
http://www.tpub.com/content/construc.../14264_227.htm

Low Coolant Light
 

I have the same problem sometimes. I have now leaks, the reservoir is full and the system is bled but I loose coolant in the radiator and have to fill it. I parked on an incline and loosened the bleeder screws but I still have to fill the radiator.