Leaking head gasket producing other problems?

The bursting of the hose is not related to the head leak. The engine is older and hoses are neglected. They will burst but not because you have another problem to fix. I would deal with the problem at hand and by doing so you will avoid other costly repairs.

Head gasket is the next step. Think about when it is pulled off, replacing the timing belt, water pump, etc.

Your comment on the hoses: I would actually replace the lower hose. You should at the very least inspect every inch of it to assess the condition. Look for any nicks, bulges, hardening, etc.

Well in order to get to the stuff you need in order to take off the head, you must pretty much teardown the area where the timing covers are. Given the age, unless any of this stuff was done in recent years, I would replace the oil pump as well. It is right there too. Now, I might suggest that you get the manual for about $20 that covers what you are going to do. It can be bought online or from the local parts store. You can buy the parts online, say from ebay and not pay an arm and a leg. Seems like a lot of stuff for one simple task but get in once, get out and stay out. Simple philosophy.