I will check it out again in person tomorrow. The guy said the model number is a 33R877.
He did tell me that he took the head off to make sure that everything looked ok. The valve lash if I remember right was .003 and .005. The guy is no dummy either. Seems if it was a head gasket, it would be a pig to start and would never run good at all. I mean it fires and idles fine and you can slowly start running the RPM's up and it is fine until it gets to a certain point and then it starts running like crap.