i install hardened seats into all the heads i rebuild. also using the 1.6 valves/seats. never hit water yet. as twisted 6 has said in the past, if installing hardened seats be sure to use the shallow seats.
you could also buy a newer head that has hardened seats installed at GM. tom
I installed hardened seats on my 250 cyl head also.
I think the newer head does not have seats installed in them, they are induction hardened.
MBHD