1991 Ford Probe GT (4cyl 2.2L Turbo)

This 1991 Probe GT has 69,400 miles. We got it last Saturday (9/15/07) got it 7 miles from the wholesale lot and it blew a radiator hose. Replaced that. It ran fine. The next day I replaced both bottom and top radiator hoses flushed the radiator. Got it home, it overheated again. Popped the hood to find out where the top hose connects to the radiator was rotten and broke off. Replaced the radiator, now the Probe has a very hard time starting. The time I got it started it smoked like nothing else. So I took it for a little spin, and it died and overheated AGAIN! We got it back to the house and I pulled the oil dip stick to find a sign of some water in the oil, it was a little milky. So my question is could this be the head gasket, a cracked head or in worst case.A cracked block. Couldn't find any signs of the coolant leaking but it's getting into the oil some how. Maybe the water pump, but I don't see how it could get water into the oil from that.(Take in mind that I am no where mechanically inclined, this is why im here) :)

Any advice would be great, thank you guys for your time :)