There will always be a certain amount of fumes chuffing out of the oil filler cap when its removed - this is largely dependant on engine condition. If the head gasket has gone, there will be oil emulsion in the radiator fill bottle, maybe water in the sump, together with expulsion of coolant, more than likely. If there is valve failure, the engine will be misfiring. You may well need a second opinion here, but check that the exhaust manifold gasket isn't blowing.
John, May 2009