Toyota Repair: 92 cresseda head gasket replace 7MGE, blown head gasket, cylinder head shop

Question
Hello Ted,

You have helped me in the past, so again, I refer to your wealth of knowledge.

My brother recently got a free car (92 Cressida 6cyl w/ less then 85k) excellent body, tires etc..
This thing evens runs smooth, and seems to have plenty of power, however, I believe we have a blown head gasket, or possibly a cracked head. The oil and water is most definitely mixing, and there is substantial steam like sweet smelling exhaust fumes coming from the exhaust. I know these are common blown head gasket signs. We ran a compression test on all 6, and seem to be around 165-180 psi

Our plans are simply to break it down and take the head to a local cylinder head shop, and have them check it out. Also we are hoping to find some clear visual evidence of a blown gasket. If we are lucky enough to have only the gasket be the problem, then we will replace the timing belt, water pump, and of course all gaskets while we are there.

My Question:
1)Is there anything else we should inspect or consider replacing while this is this far torn into?
2)Are there special considerations we need to be aware of regarding the dual overhead cam, and timing config?(in other words, when we put it back together, can we simply go by the stock timing marks?) >> (we did set this on TDC Compression prior to tear down.)

Thanks for any advise.

Answer
Yes it does sound like the headgasket is the problem, these heads are not known to crack and if the headgasket shows signs of leaking upon inspection I would assume that the head is good,85K miles is not much for this engine so I would also assume that the piston rings and the rod/main bearings are reusable, I would highly recommend having the cylinder head resurfaced, when setting the cam timing make sure that the cam pulleys are installed using the middle hole, there are three, and then just use the marks on the edge of the pulleys to line up with the marks on the cover, you sound like you are knowledgable and should have no trouble doing this but if you need more help, I'm here.