Opinion please; Blown Head Gasket?

Greyjaei,

Sorry for what appears to be continuing bad news. This is an
interesting one. I hope you'll keep the group updated.

Michael, interesting Sherlock Holmsian analysis!

Dunno about shipping a new engine to Northern Canada, but
when helping some friends try to locate an engine for their
Isuzu recently, there sure were a lot of American companies
who ultimately emailed me to give me a price and shipping
charge. I think I found one of those master sites where one
types in exactly what one is seeking for an engine, and asks
for shipping. Shipping was not expensive, at say $100 for
some companies, but I'm in the "lower 48." I do remember
seeing a site with Honda engines closer to $500 in cost
IIRC.

If you haven't googled already, keywords {Honda Civic engine
swap} turn up a lot of hits. Ebay often sells engines, too.