HEAD GASKET OR MORE?

1. Make and Model of your car
2002 FORD TAURUS
2. Current odometer reading (approx)
60,000
3. Stick Shift or Automatic Transmission
AUTOMATIC
4. Strange sounds or smells (if any)
BURNT SMELL WITH SMOKE FROM ENGINE AROUND BACK, SPUTTERING NOISES UPON ACCELERATION, POPPING SOUNDS WHILE DRIVING, CRACKLING SOUNDS UPON TURNING OFF ENGINE.
5. Fluid leaks (if any)
SMALL LEAK IN WATER RESEVOIR
WATER LEAKING FROM MANIFOLD PIPE JUST BEFORE EXHAUST, WATER SPRAY FROM TAIL PIPE AND STEAM FROM TAIL PIPE.
6. Past repair history (if applicable)
NO MAJOR REPAIRS, OTHER THAN USUAL MAINTENANCE. RESEVOIR TANK WAS SEALED, BUT WAS ALSO CONTINUING TO LEAK WATER.

DRIVING AT 65 MPH ON FREEWAY HAD TO PULL OVER, SEEMED LIKE SUDDEN LOSS OF POWER- OBVIOUS PROBLEM, GOT OFF FREEWAY- COASTING TO SIDE STREET AND AS SLOWED DOWN CAR TURNED OFF. SMOKE POURED FROM ENGINE COMPARTMENT- UPON OPENING HOOD IT WAS COMING FROM REAR OF ENGINE ON BOTH LEFT AND RIGHT SIDES. WITH PINGING NOISES- LIKE IT WAS EXTREMELY HOT- SMOKE WAS WHITE SLIGHT ODOR OF BURNT- NOT OIL, BUT NOT THAT DISTINCTIVE OVER HEATING SMELL EITHER.
THOUGHT ORIGIANALLY IT OVER HEATED- UNTIL THIS POINT NO PROBLEMS OR SLIGHT INDICATIONS OF TROUBLE AHEAD.
PUT WATER, RESERVOIR WAS EMPTY, KEPT PUTTING WATER STILL EMPTY TRIED TO START- WOULD TURNOVER, BUT NOT START AT FIRST- HOUR LATER WOULD START BUT NOT IN DRIVEABLE CONDITION.
AFTER WAITING COUNTLESS HOURS, DROVE TO GAS STATION, WHEN DRIVING AT A DECENT SPEED +40MPH IT WAS SMOOTH AND SEEMED FINE, UPON SLOWING OR ACCELORATING IT WOULD LOSE POWER, SPUTTER AND MAKE NOISES.
PARKED IT, TOWED IT ETC. TOLD INFAMOUS FOR BLOWN HEAD GASKETS.

MY QUESTIONS TO YOU:
1. IF WATER IS FLOWING THROUGH AND OUT EXHAUST IS THIS MAJOR DAMAGE?
2. IS THIS A HEAD GASKET TYPE OF AN ISSUE?
3. WHAT ARE OTHER POSSIBLE PROBLEMS?

THANKS-