Well, another day ticks by, and pretty much certain there is a head gasket failure. The symptoms now are very marked, both in exhaust moisture, and pressure increase in the cooling system. You can actually watch the hoses balooning, and the fluid level being pushed down. I'm surprised the pressure relief in the cap doesn't kick in. It's probably kaput, too.
I did the compression check about 3 months ago, and I guess at the time, the problem hadn't become so great. I think a recheck of the compression is in order, to confirm. What values would you normally get on the PT engine?
I spend a lot of time out of the country, so getting on top of these things can be a bit of a challenge.
I am subscribed to 'the list' at audiworld (just under a different name). I've been watching the discussion, but will chip in shortly.
Time to get it all to pieces for the future head work!