Sorry to hear about you engine troubles Darrin. I'm, sort of, going through the same thing as you right now. Have no compression in cylinder three and when air is pumped into the cylinder you can hear the oil bubbling through the dipstick tube, so I have an issue with the cylinder or the piston which means I need to replace the whole engine
It sounds like your issues are in the heads so you might be able to get away with just getting some new/rebuilt heads. You could have a burnt valve (or two), which means that they aren't sealing to the heads, thereby letting the oil blow by them. You could also have some carbon build up on the valves that isn't allowing them to seal properly. OR, you might just have a blown head gasket (others will have to weigh in on that). Are you seeing any blue smoke in your exhaust, or is there oil on the engine where it shouldn't be?
"The major difference between a thing that might go wrong and a thing that cannot possibly go wrong is that when a thing that cannot possibly go wrong goes wrong, it usually turns out to be impossible to get at or repair."
-Douglas Adams, Mostly Harmless