[JFP in PA]

These engine's never blow head gaskets, so you most likely have a cracked head.

As far as removing the heads with the engine in the car, yes, it can be done but is a real bear to do. It is vastly easier if you are going to pull both heads to simply drop the engine out first. It will also actually take less time if you pull the engine.

As for pulling the engine and trans as a unit then separating them, yes, you can do it that way, but I personally prefer pulling the trans first and then the engine. It is nearly impossible to just pull the engine and leave the trans as there is no room to do this.