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The VW has a blown head gasket which leads me to believe the head is probably toast. My dad had an 80 VW pickup he bought new. It overheated after only having it a little over a year and a half because of a faulty fan switch sensor. The POS only had a idiot light and that obviously didn't work when it overheated. Overheating it warped the head. The head could not be resurfaced as it would have changed the combustion chamber characteristics.
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DJ
84 300D Turbodiesel 190K with 4 speed manual sold in 03/2012
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