Yeah, not time to panic just yet...one of the things you can do to help yourself is to have a radiator shop or mechanic check the coolant for combustion gases... that will tell you if you have water intrusion in your oil system...then, it's likely that it's only head and/or head gasket related...pull the head, take it to a machinist, have them magnaflux it, deck it, basically rebuild it, you will likely need new exhaust valves...had mine done about six months ago, ran me less than $200...in California! Carefully examine the head gasket, USUALLY (not always) you will be able to tell if it's failed... if you can't detect a failure, have a very experienced (noticed I didn't say well trained?) mechanic take a peek, they will see things that you and I will miss. Same thing, have the head rebuilt anyway...if it is cracked, obviously, you will be replacing it...and there are good rebuilt ones out there, normally your auto machine shop is an excellent source for those, they will either have them in stock or can source them quickly...as long as you have the head off, might be time to take a peek at your cam timing gear set... the original ones were made of aluminum and nylon, love to explode at the most inopertune times, get a good cast iron set, replace the soft plugs on the block with brass ones, as long as you have access...basically, short of rebuilding the engine, there are several things that you can do to prevent future problems. I had my engine down to this point last spring, I think in my case, I might could shoulda rebuilt it, BUT, it runs great now, so, maybe not, my RMS is leaking a bit, so it's just a decision you need to make based upon your situation, finances, and friskiness...