I got mine in the exact same situation - turned out to be a blown head gasket. Wasn't too tough to fix but once I got it running everything else started to break. I love driving it but I doubt it will ever stop nickle-and-diming me. In my situation (with a full shop at my disposal) it's easy to drive it daily. If you aren't going to be doing any of the work yourself things will get expensive.

'91 LWB, 31x10.5s, KYBs, A/T "I look like Robert De Niro, I drive a Mitsubishi Pajero" - Billy Bragg (not the original lyrics, but that's how he sang it when I saw him in Dublin in '04)