As blknight says, you have not necessarily shown that the head gasket is leaking. But even if it is, unless the engine has been grossly overheated (all paint and oil burnt off head and upper part of the block) then the most that is likely to be needed is a slight skim on the head and a new gasket, plus, while you are at it, valve grind and stem seals plus overhaul injectors. Even if you pay someone to do it (and all of the work except the skimming and injectors you could do yourself) you should have change out of $1000. It is not an expensive engione to work on, particularly if you compare it, say, to a Td5
John
John
JDNSW
1986 110 County 3.9 diesel
1970 2a 109 2.25 petrol
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