Like Bob posted, that is just a scare tactic. A bad HG does not correlate to a bad bottom end unless it's already showing signs of failure. I'd steer clear of that shop from now on.bressen said:Thanks for all the info!
So, since there is air repeatedly getting into the system, it's almost certainly the head gasket (though we could check to verify flow and look for a leak sucking in air someplace, but that seems unlikely, and could check for CO in the coolant to make sure). A shop I just talked to said if they do the head gaskets on a motor with 155k on it, the bottom end could blow before too long, so I'd be better off just putting in a new engine. Ouch.
I'd make sure the clamps are tight, test the thermostat, replace the radiator cap and bleed all air out before condemning the head gasket. The hole in the thermostat is a good trick - usually only needed on the 2.2/2.5 4 cylinder engines - I did it with all the 2.5's I had.
The last thing I'd do is test the coolant for exhaust gases.