Allen, you need to get this thing cleaned down to the metal to see if the cylinder is cracked, or if it was just run a long time with a bad gasket. Or did it stop running, the engine pulled and replaced, or just parked for years and now you bought it. It may or may not be reuseable. But if history on these things means anything then you are looking at a blown head gasket fix. Too bad that wasn't done long ago. Maybe the only reason you now have to deal with it.
First you need to get it clean enough to see lines where coolant might have come in from the sides of the cylinder. Not just grooves from the piston rings, actual cracks through to the water jacket.
Used blocks are fairly easy to come by on Craigs list, at least around the PNW it seems. Is this a 1.5 or 1.6 liter engine?