This is a reply I received from another mechanic. What do you think
failed gaskets are a function of time, coolant not changed. the car most probably still has the original coolant.
nice car, engine problem .. tough situation .. based on the info you provided, either you have a failed gasket or failed headgasket bolts, either case requires the pulling of the heads or using a resin repair kit which are used quite successfully if done exactly by the directions but the life of the repair is up for grabs.
there are several on the shelfs of the retail part stores ..
a proper repair is expensive and time consuming ..
i'm not familiar with the K&N stuff you mentioned.