Ian
My 1997 1.6K had it's head gasket replaced by Oily last winter but the failure on mine was where the elastomer seal had become detached and the coolant was leaking from the HG down the side of the block. Luckily the head didn't need skimming and the liner heights were OK.
The engine was coming out anyway to change the clutch release bearing so I took the opportunity to change the clutch, HG, head dowels from plastic to steel, inspect the bottom end bearings, remove the sump foam, carry out Oily's sump gasket drain mod, fit a new front crank oil seal, new wider cambelt, verniers and a little fettling of the inlet manifold and throttle body. Also ended up fitting an Apollo.
So every cloud has a silver lining *wink*
Bozz
McLaren Orange and Black 1.6SS 6 Speed here