ls1
You would have to pull the heads from a new engine anyways if you don't know the history. If you have no expensive parts inside it, pretend this engine is your new engine. Pull the heads and look inside, and if you don't like what you see do what you would do in the other case: go look for a better candidate. While you do that, continue searching inside your damaged engine for clues, examine every part. If damage is minimal obviously continue using it. I am only saying do not get hung up on expensive extensive repairs in unknown circumstances unless you are fully aware of how your engine was used (if you owned it from day 1, for example, you would be much less likely to replace it, knowing how it was treated).
5 and 7 together would point to head gasket normally. Could be valve stem seal related or valve related also.
3 places to look. cyl leakdown and small camera in bore would show more.






