This is a long post, so I'll break it up with pictures.
Well I wound up taking the head off and there was a busted pushrod on cylinder 3 and the lifter was popped out of its hole and sitting up on the little ledge there. I took the head to a local machine shop owned by a friend of the family, and he took the head, took it apart and said the seat was gone on the exhaust side of cylinder 5, and the whole thing looked like *** and needed to be redone. He cleaned the rocker arm assembly up and replaced all the studs for the intake/exhaust and painted the head black and didn't charge any more (all I asked for was a valve job and resurface).
He gave it back to me 2 days later, and had a set of brand new lifters and push rods ready to go for $275 cash. I thought it was a decent deal. I put the head back on after buying all the top end gasket set. I got everything back together in an hour and the valves adjusted to .010 and .020 respectively.
Then I rebuilt the carb. That cost $40 and there was really not much to it. I've never done one before and was surprised at how few parts there were in this one. The only thing I had difficulty with was remembering which notch the fuel pump hook sat on, since there were 3 choices.
The car idles beautifully now, and I am averaging about 18-19MPG.
The problem with overheating (well, running too hot) is still there, which probably fried the valves originally. I pulled the water pump and it looked like it was recovered from the wreck of the Titanic. I felt fish could be living in the barnacle junk on it and it was incredibly difficult to turn. I got a brand new pump for $24 and put it all back together again. The car still got hot. I drained the entire cooling system again, and jammed a hose down the radiator and ran it at full blast with the bottom hose detached for about 20 minutes and let it sit and went to work. I refilled the car with water and some cleaning junk for radiators I bought at the auto store. It does not get to the ppoint where it no longer cools down any more. I can let off the gas, or idle, and the temp will drop. Before it heated up and did not go down (after the new head was on).
I'm guessing at this point I just need a new radiator. It does not overheat anymore, but still running too hot for my comfort. I tried 1-800radiator and they wanted close to $400 for a radiator for the car. I do not care if it's original and would prefer whatever works best as a daily driver, so if anyone has any ideas, I'm all ears. I looked at some of the american radiators stuff, and a lot seems like it will fit, and has the built in tranny cooler, but I'm trying to keep cost down. I don't mind if it's aluminum or chrome plated, as long as its functional.