I'd say that if you like the car and the body is in good shape, fix it.
Head gasket is straight forward. Automatic transmissions are pretty relaible, so (worst case), a good used one should be easy to find. They built the car around the blower motor so it is kind of a pain, but not that difficult. Rear bushings and shocks are maintenence items.
Remove the spark plugs and look at the insulator around the center electrode. A green tint will indicate coolant in that cylinder. With the car warmed up and running, look in the coolant reservoir (a word that needs an english spelling) and see if there are bubbles coming from the engine. The next step is a compression test.
Greg
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