If the head gasket is blown, your engine isn't worth fixing. Because overheating is the only thing that'll blow a head gasket at this mileage. Which also means the head and/or block is also probably warped, and there's probably other damage as well.
Paying to r&r that head gasket would be like giving a liver transplant to a drug addict.
You'll be better off finding a used engine with as low miles as you can. But FIRST have the engine checked out by a mechanic you trust. (Mainly a compression check)
You'll only spend a few hundred more if at all, and the used engine should come with a warranty.
Monday, September 20th, 2010 AT 6:25 AM