I think bad headgasket.

[The_Jeff]

I would just get the head gasket and some new head bolts, they may or may not be torque to yield.

A head gasket job on this motor is only a few hours, I did my BILs beater 96 cav. You can leave the intake and maybe even exhaust manifolds on! The hardest part IIRC is getting the PS pump and associated bracketry off.

His gasket had an external coolant leak by the alternator/ water pump area, a common failure. Was losing coolant and smelling awful when it hit the exhaust. You may have seen the low coolant/overheat light, may as well check the reservoir.

 

[Trav]

Get the head set HS9469PT-2
And head bolts FEL-PRO Part # ES72172

Check Rock Auto out,use discount code 33502792753793 for 5% off.

 

[mechtech2]

When you do the quick test of checking plugs for this sort of thing, you are looking for the odd one. All of them being even tells you the cyls are about the same. And a leak would affect one cyl more than the others.