[Grandavi]

Definitely would think at the very least its a bad head gasket (especially if he thinks it is as well).

now.. the choice comes down to... do you have the skills/tools/shop to do this yourself? To repair a BHG is 1300.00 labor in Canada (the Toyota Dealership quote). then you have parts on top (head gasket, valve cover gaskets, and everything else your run into)

As well, just a fyi, normally on a car that old (as mine are) you have hose issues. I replaced my hoses (all vacuum lines and anything else rubber) except the accordian hose so far. That gets a tad costly as well.

I dont want to scare you off of the car, but you need to know that these cars are not cheaply done if you do them right. From what I can see the body is good on the car and thats a nice start. However, you wont be driving it without putting at the very minimum another 650.00 (guessing of course) into it.

Its a great car and well worth every penny in my opinion. If the body is rust free and interior is in really nice shape.. you can always part it out for more than 800.00 without too much effort should you change your mind. Definitely worth 800 to me.. I dont know about State-side for value.

Anyone else have better input for this?

I just looked again and noticed that the AFM and all the intercooler piping/air cleaner, etc.. is in the hatch. Wondering if you may have a turbo issue. Be very careful with the AFM, its not hard to damage it if you handle it incorrectly.