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Retorquing Heads

I have an 81 Audi 5000 diesel(no jokes please, I only paid $400 for it)
which has a leaking head gasket.
	Slow oil leak from head/engine joint.
	Small, but noticable amount of oil in coolant.
	Engine runs extremely hot when you push it hard(which is most of the
time because it only has about 60 horsepower, and weighs well over 3000

The service manual lists a procedure for retorquing head bolts, but it
impllies that you should only need to do this a few thousand miles after
changing the head gasket.  Should I retighten the bolts, put on a new
head gasket/see if the head is cracked, warped etc., or drive the car
til it blows up(which I am afraid of because my dash lights no longer
work).  I bought the car from the original owner and the broken odometer
said 100k miles, he said it broke about 5 years ago.  I've driven the
car four five months without any maintenance except lots of oil, so it
doesn't really owe me anything.  I have already spent more on insurance
than anything else.!!! 

Any suggestions or comments from anyone who has ever owned and/or worked
on one of these would be extremely helpful.

BTW, if you ever get too many speeding tickets and need a car that will
make you slow down, I highly recommend one of these.  I can usually beat
a city bus at a stop light.  
James Gagliardi jg6r+@andrew.cmu.edu           1-412-862-3006