Looking at your pics I don't see evidence of a blown head gasket, but it may be under the gasket which is still on in pic #2. Definite evidence of oil ingestion. Easily clean with a wire brush and a good cleaner. You will have to pull the valves and clean then. May have to regrind the seats and valve faces. Send pics after they are cleaned, so we can see condition. I don't want to scare you, but I would be pulling the other side and take a look in that cylinder. This is starting to look like a total rebuild, but let's do some checking first. At this point I ask my customers, how much do you want to spend? I know that you will be doing most of the work, but can you lay up the unit for two weeks or more due to your schedule and getting answers to your questions. I could easily see $150 in parts alone. I think I can talk you through this, you may have to outsource a couple of steps. Let us know what your thinking.