I agree that most likely the headgaskets and lower intakes need to be replaced. I would advise that you only use AC Delco gaskets, and follow their updated torque specs.
Another possibility is that the heads and/or block are cracked or warped. If it were my car, this is where I would considering doing a 3500 swap.
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1999 Z34 - 3800 Turbo - Under Construction
1999 Grand Am GT Turbo race car - 12.1ET on stock engine with 10psi!
1977 Corvette - LS1/LS6 T56 - Under Construction
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