Blown Head Gasket?

[Karl Robrock <robrock@domain.elided>]

I have had my 164L for about a month now, and recently blew out the upper
radiator hose. So I took off the hose, and ordered a new one. I then was
going to have the radiator flushed, when I noticed that the inside walls
of the coolant bottle were covered in grime. The chamber that contains the
sensor (temperature sensor?) is especially covered in the stuff, about 3mm
thick. The grime is a grey color, and has orangeish grime underneath.
This would indicate to me that oil is leaking into the coolant system, and
most likely through a blown head gasket. 
If this is the cause, I have a number of problems that i face. First, I
have no idea how to diagnose which head has a blown gasket (I have
replaced a gasket on an inline six, and "which head" is not an issue).
Also, I was wondering if while I have the head pulled I should do any
other work worth doing (anything related to cams, valves, etc.). I now
have the 164 CD, and will look through that on how to do the work. Is
there any reason I should NOT do this myself? I am assuming this would
cost $600-$800 at a shop. I will however, have my car towed to a shop to
have the radiator flushed. Any advice would be much appreciated.

Thanks in advance,

Karl Robrock

'91 164L (feeling very hot)

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