From your description it does sound like a blown head gasket. As long as the head is not warped or cracked it should be a fairly easy fix (even on a F*rd) when you have some time to spare. Take the intake manifold, heads and anything else in the way off and install a new good quality head gasket. Once finished be sure to flush the cooling system and change the oil.
If it was just the head gasket, the pistons should still be in good shape. The reason there is no compression is because when 1 cylinder is on the compression stroke, the air that should be compressed leaks into another cylinder close by. This other cylinder will be on the intake or exhaust stroke, so the air from the first cylinder will leak out and not be compressed.
Good Luck
Adam
