if you have not done the head gasket by now, or for anyone else needing tips:
1. Unless the engine has low miles (well under 100,000), i'd do a valve job at the same time. My last 2 that i did (on other cars) i just removed the old head and swapped it for a rebuilt one at a cylinder head shop. (check the shop out first, find out how long they have been around - that can be a good indication of the quality of work they are likely to do).
I went to one guy who quoted me $600...i knew i could do better on price, so just asked for the parts back and paid his $30 minimum. He got so mad i thought he was going to throw me out of his shop, and i know he would have done a good job, but he was over-priced and i knew it, so that was that! Leaving the mad machinist behind i simply got one already rebuilt from a place called California Cylinder heads for $300 (these are year 2003 prices).
Here's some more tips:
-DO NOT unbolt the cylinder head or manifolds until that engine is STONE COLD. I mean over night cold. You can remove the accesories around it etc. but don't touch the head or manifold bolts until the cold requirement has been met.
Failure to wait until the engine is cold can/will result in a warped head or even warped block that wont re-seal again without a lot of resurfacing.
-When you get to unbolting the head, DO NOT just start removing head bolts and pulling them out. Loosen the bolts in increments and in sequence (again you should do this to avoid warping the head.) you can use the same sequence you can (must) use when it comes time to tighten the head back on.
Here's an example (not necessarily the one toyota says to use but it will probably work in a pinch)
http://z.about.com/d/autorepair/1/0/z/A/41997686.gif
-Naturally you want to do as many maintenance chores at the same time you are doing this as possible while everything is apart anyway. If the water pump has a lot of miles, i'd change that, same goes for the timing belt idlers, and definitely change the timing belt now too.
-a torque wrench is not optional when reinstalling the head it is a requirement. Before reinstalling the head, clean the head sealing surface and the block with acetone or some other non-residue cleaner. Blow out the bolt holes in the head with air if you have it (alot of times they will have coolant in them so make sure to get the holes clean and dry). if you do not have air then piece of paper towel stuffed into the bolt holes will get coolant out, a a gun cleaning bore brush and cleaning rod works well here to clean the threads and holes also.
Examine the head bolts, are the threads clean and unmarred? If they are then the holes in the block are (probably) ok, but dont forget, on many of their engines toyota recommends REPLACING the head bolts with new ones every time the head comes off (im not sure if your engine is one of these).