Sorry for the bad news. If it is indeed leaking Anti freeze then the head gasket is most likely the issue. However, there is also the small chance you have a cracked block or head. At least have the head inspected when you do the head gasket and check it in case it is warped. Anti freeze when it burns usually burns a white smoke or steam and you will often see it in the oil sump or oil the AF resevoir.
I would also recommend getting it fixed. But if you are not comfortable doing it yourself get and indy to do it at least you get a warranty. JoeP(a member here) is in raleigh and a friend of mine has a shop called 'the foriegn service' on 70 between raleigh and durham.
good luck and break out the credit card
2005 320 CDI
2006.5 VW Jetta TDI
1991 560SEL (179000 Sold)
1972 280SEL 4.5 ('The Lead Sled' 320000 miles when sold.)
1972 220D (225000 when sold)