You could also have a bad piston ring, you can do a pressure test, and a block test, both would be helpful in diagnosing what the problem is. If you find yourself needing an engine let me know, I think my dad has one that he may be willing to split with.

there is a place called autospec, in north phoenix, they are not the best for customer service, but they are quick, and the most affordable shop for toyotas, give them a call, and ask them what they think is up with your motor, and how much it would be for them to fix. I had a complete motor rebuilt by them for a 22r for 600 bucks, and it was done in two days. (602) 870-1482 is their number. You could have a blown headgasket. Changing the head gasket is not an impossible task. This is a link to a gasket kit that has everything for the HG job. http://www.amazon.com/s/ref=nb_sb_no...headgasket+kit