Volvo Repair: 1991 740 head gasket, volvo tools, exhaust gasket

Question
I just purchased a 1991 740 with 160,000 for my son to drive, and I suspect there is a leaky head gasket. The engine is a little noisy, like an exhaust gasket leak. I cannot find the leak though. After changing the oil last night, and power washing the engine, I saw what appeared to be steam or smoke seeping around the head to block area right behind the timing belt cover on the right side of the engine. Additionaly, there was white steam/smoke coming out of the exhaust. Once I drove the car 20 feet, there was no more steam/smoke. It was definitely not blue (oil) or black. The car runs very nice, except for some sputtering at idle. I suspect the head gasket may be an issue. The PO stated that he had to replace the thermostat as the car overheated. Is there a  way to verify if it needs the hhead gasket, and are there any special Volvo tools to do the job? It looks like a very easy engine to work on.

Thanks,
Steve  

Answer
Hello Stephen,  Two things,first,your suspision are correct.Second,due to the fact that she overheated and to what degree we don't know,damage has been done.The fact that you can see 'foaming at the block is not good news.Any way you slice it,its 'The French Revolvolution' off with its head.There are sp.tools needed.With the age and oil leaks its best to replace the 3 front seal and t/belt and tensioner in one swoop!Older engine don't bounce back cheaply,take the head to a recomended machine shop,check for craks/warpage they are the best judge if it re-useable.thank you and good hunting! PKD