Blown headgasket. What's next?

It's all because the head gaskets were never re torqued after two wrecks.

Just kidding kinda.:D

The head gaskets were trashed before it ever went into the car.
That's what the standing water rust in the cylinder was caused by when it sat for the year I'd bet.
Look at how crappy the compression ring contact area's on the heads and cylinders is.
Steppin on it just pointed out the weak link is all.