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Refill the radiator and leave the cap off. Let the engine warm up and see if water is burbling out of the radiator. That would be air bubbles (and an obvious leak).
You've pulled the plugs? I doubt that you'll find a smoking gun there (like green drops on them), but if too are super ugly and the rest have a delicate patina of grey ash, then you know which cylinders are in trouble.
Also, you won't necessarily find water on the dipstick, since oil floats on water. However keep looking for a chocolate milkish foam on the oil filler cap and the dipstick forming when the engine cools down. That would be bad.
Replacing a headgasket on the M130 is straight forward. Drain the engine fluids and unblot everything, send the head to a competent and experienced machinist withe the cam tower still attached and the valves in and then put everything back in the right place. Worse thing that happens is you do it wrong and have to take things apart again. You can't make it worse.
Having A/C adds a few bolts and means a bit more heavy lifting in a tight space.
-CTH
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