Ok you diagnose this one

[FritzDaKat]

And no, you shouldnt see fluid coming from the booster, if there is, then your master cylinder is leaking, and this could have possibly caused damage to the booster, grab a booster form the scrapyard, pop it in (Along with a new master cylinder if youre positive the fluid isnt just from a spill or there are no leaks in your lines) and that portion of the problem should be solved.

Also be very sure to properly torque down the heads in the exact sequence that whatever book you have suggests for that motor, otherwise you'll have an area slighly less compressed than another and this could have caused that exact problem. I learned the hard way myself on an old Buick with a 350 block, changed head gaskets twice before I went and got the torque wrench.