Originally Posted by
NeedsWings
looks like either bad head gasket or bad seal inside front engine case. either way i would buy a low mileage used 320 engine for $250 from a junk yard and swap that in
This would be, hands down, the easiest and least expensive solution. The swap is a day of your time, tops.
To replace the gasket will be both a money and activity trap.
Buy a used engine.