That sounds like a cumbustion leak detector fluid. Pretty goog chance that it IS blown, and a good chance that it is cracked. One thing you can do to save a few $ is not buy the head set, but just get the head gasket itself, and the EGR plate gasket (that's on the back of the head, and only if the head needs replaced) since the way the other gaskets are made, they can be reused, as long as they aren't messed up. The intake and valve cover are nice thick o-ring type gaskets, and the exhaust is a MLS metal gasket. The only other one you'd need is the water outlet gasket, at the front of the head. The head gasket itself should be around $20, and the head bolts around $20. The EGR plate, and water outlet should be less than $10 for both. This is all dependant on what the machine shop needs, if the head is bad, and what the replacement has. If they get a fully assembled head, you shouldn't need all the extra stuff (valve seals) that come with a head set, but if they get a bare head, then the head set will be better to get, as the seals are over $4 each, for 16 of them!