[Vwdiesel] Smoky, Bubbly Engine?

[Will Taygan]

I picked up a 1990 Jetta 1.6NA diesel for $400 last spring, and finally
got around to checking it out today (too much time spent reviving the
1982 1.6NA Westfalia.)

The engine has a junkyard marks, and a vanagon intake manifold.

Really smoky exhaust, smells like oil.  Obvious bubbles coming out of
the coolant expansion tank.

Engine sounds like it wants to run away.

Plenty of blowby from the valve cover, blows less when it revs (why is
this??)

Blowby is pushing up the dipstick and inch or so when engine revs.

Pulled the injectors, #1 and #2 were sopping wet with black crankcase
oil (not diesel).  #3 and #4 look good.  All glow plugs work, it drives
and starts well (in the teens today).

Compression was 405, 350, 390, 285, starting with #1 (the oily one by
the timing belt).

I don't really want to pull the head now, since it's gotten cold and I
don't have a garage.  I'm just trying to get a "best guess" as to what's
going on.

Could is be "just" a head gasket?  That I could deal with.  Or, more
likely a full rebuild (probably salvage the head and tranny, but bail on
the block.

Thanks for your ideas.

Will in Alaska.