Years ago my Subaru XT turbo was blowing white smoke. I pulled the head and checked it and it looked fine to me. I brought the head into the shop that rebuilds them and the guy checked it and found a hairline crack smaller than I could ever see. I got another head out of the junkyard, a new gasket and the car ran like gangbusters for 3 or 4 years after that until it rotted out.
Maybe call around and see if there's a shop that'll check it for you (hopefully for FREE). If it ends up not being cracked anywhere and it isn't warped, maybe a new head gasket will end up being a cheap fix?
I'm sorry I can't be any real help but maybe it's a start for you ?
Good luck Brother,
Dave
