Well, I went and got my mechanic to open up the engine and it turned out to be just the gasket. He said he's going to show me where it burned out (just on the passenger side of the engine block) He said that it was a strange place for it to go, but thankfully it'll be a lot less than if it was the head itself.
Thank you all for your help and advice.
1976 230 W115 Back in business !!!