Thank you very much for the suggestions.
In the meanwhile I found out that the previous owner used the cheap "Engine Restorer 4 cylinder" at the Autozone and use it. He claims that before I bought the car he had be able to go from Santa Rosa to San Francisco and back twice.
Steel Seal site claims that it is a different product than products based on pellets and it can fix the engine permanently.
Thermagasket has pretty impressive testimonial on their site:
http://www.rxauto.com (I know they are on their part). I could really find anything online from independent position. It also gives money back guarantee (without shipping cost and sale taxes). Right now it seems the best deal to me because with $150 and 1 hour work I could get the car running. Opening the engine and replacing the gasket is going to be way too expensive and I will not have the guarantee that is going to definitely fix the over heating problem. I am thinking about buying it tomorrow and getting it by Saturday so I have time to work on the car.
This is what they claim:
Q: Can the head be removed in the future if treated with Thermagasket?
A: Thermagasket will not hinder the future removal of the head!
Q: How long will the Repair last?
A: The repair will last indefinitely
Q: Will Thermagasket damage my engine, radiator or heater core?
A: No... As long as the treatment instructions are followed!
If they keep these promises plus the money back guarantee I may be satisfied with the product.
If it works I will be more than happy to be a new testimonial for them. If it does NOT, they would have to pay for putting a new engine in my car if they don't want that EVERY forum on the Internet will have my experience.
Regarding the thermostat, the Thermagasket guy told me to remove it NOW before using the product if I need to use the car.
Do you have any personal experiences about SteelSeal or Thermagasket?
How much do you think i could ask (and get) on craigslist to sell the car "as is" declaring the problem?
Thanks again!
-Camicia