Yes it does sound like a bad headgasket, but if your car is a 96-98 it might be the intake manifold. If that is the case Ford will fix it for free. Ares is right though, at any rate you definately should not be driving the car.
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96 Mustang Cobra Blk\Blk, K&N, Crane 8.5mm wires, Steeda Tri Ax, BBK H-Pipe, Steeda Timing Adjuster, Underdrive Pullies, Mobil 1, 3:27's.
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