Am I totally screwed?

[Mecaz]

I'm riding my 2000 on the freeway and I hear/feel a little blip. It runs fine for 5 more minutes. When I pull into the parking lot a LOUD ticking that sounds like a very bad valve starts. It goes faster w/throttle. I shut it down and trailer it home. Start it and the whole family listens. The consensus is that it's coming from the motor (valve area) but nobody's positive. Tried stethoscope etc. Did I mention it was a LOUD ticking? Pulled off the valve cover and all looks fine and within specs...all valves appear to be working and everything seems tight. BUT, I looked at the oil sight glass and it was black. Two days ago it looked fine. I drained the oil and it appeared that there was an awful lot of it and I have never seen anything blacker. I see no signs of water in the oil but I little gooey brown stuff is in the water. I have no idea where to go next. Help?

[Mustang]

blown head gasket if you have oil in the radiator
do a compression test you may see one cylinder that is weak

[Mecaz]

you're probably right...I'll check it tomorrow. Even if the head gasket went though, there still is what sounds like a pretty bad rod knock. I suppose it's always possible that was from the water in the oil but that's a bit of a stretch. I'm thinking I'll throw some fresh oil in and start it. If the knock is gone, I can replace the gasket. If not, I guess it's time to bust her up for parts

[jphish]

Sorry for your troubles.  so - whats the verdict? Toast or salvagable ?