 
I removed the head today. This engine got very hot. The oil smells burnt. There are the rocker arms lined up:
A peek down the inside of the engine reveals the lifters:
It appears to me like there was a blown head gasket, and Solder Seal powder was used to stop the escaping water. There are crusties in the water jacket that look like clumps of powder, there are some deposits on the outside of the engine, and there is evidence of something around the outside of the head gasket like powder oozing out:
Here is a look inside one of the cylinders. There isn't much of a ridge at the top:
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