Thanks for your input, Geezer! I'll be sure to remember that as I get further along in the process. I'll fill you guys in on some recent developments. I finally have photos, so that'll be helpful I hope. OK, starting from the beginning. Sorry if some of these images are poor quality.

Here's the head gasket, which seems to be in pretty good shape. I don't know much about how used gaskets are supposed to look, but there were no cracks and it seemed pretty serviceable to me.

Here's the block in engine, with exposed mating surface (scandalous)...

This is what my intake manifold gasket looked like as it flaked off the manifold....yikes.
Ok...here's where the plot thickens.


This is a picture of cylinder 3, with evidence of some strange divots in the top of the piston...I'm kind of at a loss as to what may have caused this. There are corresponding marks on the cylinder head, shown in the next photo (after a couple rounds of cleaning) shout out to royster and geezer here for their gunk-busting suggestions:


So how big of a problem are these little divots? They aren't part of the gasket coverage area so technically they won't affect the seal...right?
Now, the plot thickens even more:

It's damn near impossible to see in this picture, but there's a hairline crack in the valve bowl running from the spark plug hole to that exhaust valve. it's probably a centimeter long and very very thin, but it's there. Opinions?

In sum,
Keeping in mind that my initial problem was smoke, low power, and running rich, and given these new discoveries, I'm inclined to say that both the little crack and the divots in the piston aren't huge issues, the head can still be reused. Royster mentioned he thought the low power was coming from bad valve seals. Any ideas/comments/suggestions/snide remarks?

P.S. Has anyone had their head machined/valve seats reground/know how much that should cost me?

A big thanks to everyone again.