OK, that is really is definitely bad. I was just skeptical of it being bad when you said water poured out unless you had actual eyes on the source of the leak.

Glad you got it tore down and found. More then likely the heads are going to come back fine. Take the time to clean everything completely before you re-assemble.

 

i was shocked at how it blew out i have changed 2 other vehicle head gaskets in the past none was this bad we lightly sanded the head and block to remove the old gasket material and checked by our eyes for cracks saw nothing but we figured for 15 dollars it is just as good to have it pressure tested

 

head has been surfaced and block is cleaned up ready for friday/saturday will update then so far i need to get 2 new manifold bolts and 3 studs for the crossover pipe but other than that we are set to put her back together uploaded is a pic of the gasket set i bought

 

I have had a 3.1 do the exact same thing and HG's looked even worse yet no water in oil and it ran perfect.

I had these milled and they were fine,I am sure you will be fine.