Help!

My better half came home this evening after driving the 240D and said "Honey, the car smells funny..." Immediately after walking out the front door the fragrant smell of coolant hit my nose, however there was no coolant on the ground. Opening the hood revealed an extremely hot, slightly smoking engine. Turning the key to the on position showed the temp gauge pegged all the way to the top! It took 4 hours for the car to cool down (Still 100 degrees and it's after 10:00pm). Checking the radiator showed no coolant and after I started to refill the radiator the coolant started running out of the water pump weep hole. I have now drained the radiator coolant into a sealed container.
The good news is that the engine still started after it cooled down (I ran it for about 15 seconds). The bad news is that I do not know everything that I should look for before I start spending $$$. Please add to the list and correct any shade tree assumptions on my part...

1) Check compression to make sure valves and head gasket are OK. Is it possible to have burned the valves and warped the head and still get a good compression check?

2) Check for coolant in the oil. If there is coolant in the oil do I assume cracked block?

3) ???
4) ???

This is really making me sad....

I really like my old 240D...

Thanks for the help.

AzEagle