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Seems like it could be the head gasket then. I think your pic shows the upper rad hose, the engine coolant temp sensor, and the dizzy. The head will join the block just about there, just below that sensor and the hose, I believe. So maybe the head gasket.
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See my car's mod & maintenance thread and my electric bicycle's thread for ongoing projects. I will rebuild Black and Green over decades as parts die, until it becomes a different car of roughly the same shape and color. My minimum fuel economy goal is 55 mpg while averaging posted speed limits. I generally top 60 mpg. See also my Honda manual transmission specs thread.
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