need some mechanical advice. topend issues

[safariman]

got a jeep cherokee 2wd for 300$ previous owner over heated it but drove it like that for an unknown amount of miles. ( they were out of town and were in the boonies so had no choice ) so it blew a headgasket due to a cracked radiator. we replaced the headgasket and radiator. it started and ran but then started to putter and puff out white smoke. this is when i got the jeep for a steal..so i hope. i tore the top end down today to find the headgasket is in good shape. looks like it did when we put it in, no blowouts around the pistons,etc.
the oil looks like mud but the coolant is pure green, id like it to be warped but im thinking the head is cracked. any input?

local shop quoted me 140$ for a mill,cleaning, valve job and replace valve seals and check for cracks. just want to get some opinions before i fork out doh

thanks

and forgot to mention i had it running yesturday to see how it ran, lots of white smoke and water out the pipe and when i loosened the radiator cap there was alot of pressure.

[safariman]

i put some gas in the combustion chambers to see if it would leak, and only the 2 at the rear end of the head still have gas in them, every once and a while theyll trickle but not like the other 4. they let it out quick. especially the center 2

[smokinsilverrt]

did you check the block and head for warpness when doing the headgasket?usally thats a must espically knowing they overheated it.