BMW Repair: 94 325i overheat, blown head gasket, head gaskets

Question
Hi. Was reading about the head gaskets. THis vehicle had the "got hot/smokes white" symptom. Have not dis-assembled, but did do several comp tests. Typically its' about (1-6) 190/250/190/180/190/185 (more or less; engine warm each time).  Auto trans/A-c/146K miles. Seems lots of pressure in coolant reservoir. Water looking stuff on oil cap.
Would you think it's head gasket?  Should we do a top overhaul?  That exceptionally hi pressure #2 bothers me. Change waterpump, and timing chains?  Any other issues we should be aware of?  WE've done suspension and brakes all around already.

Answer
Jeff,
 #2's compression is a little strange to me as well, but usually when a head gasket it blown it will read lower pressuer on one cylinder rather than higher.  If you have oil that has a milky look to it (water) then you almost certainly have a blown head gasket.  You could have cracked something, but most likely it's the head gasket.

 Depending on how hot the engine got, you might have warped the cylinder head.  This would require it to be decked or planed to get it back flat again.

 I would remove the head and check for a broken gasket and procede from there.

 Good luck,
 Josh