Are the original heads not usable? Might try Olson's gaskets for the early head gasket. Don't recall any duscussion on counterboring the block for seals but I don't see why it could not be done.
original heads are cracked between in and out ports..alaska dont have the setup to weld them, one thing that i dont understand is if the original heads didnt come with directors and they didnt leak then why bother using directors and o-rings on the ones that call for them.. the only differance is the recessed water port in the head for the o-ring, copper coat city?