I disagree. If you are going to spend $$, do it right. Have the heads completely rebuilt...

bkg [/quote]

>>>*Yep, do it right. Not doing a valve job with new seals is silly. On the "cracked" block part, I would like to see it if it is.
The only ones I ever see broke threw a rod through the side, *well, one froze up and broke once, guy put plain water in it.
A gasket leak near the oil passage can put oil in the coolant, actually fairly common.
Sounds to me like clean, hone, rings and bearings, and a valve job.
Most of the work is in getting all the stuff OFF the engine to get to it, then it's easy....*EB