Are head gaskets an issue/problem with this car?

It is definitely a possibility. I would plan for this eventuality if you're going to keep the car. Check out www.carsurvey.org to see if anyone else is reporting this problem. Other than that, just keep your antifreeze changed, watch your temps, and you should be fine as long as you don't overheat it.

the whole job of replacing the head gasket is US$1000-1500, not the parts. the job can be done for under $200 in parts. for the 7MGE (NOT the 88 and earlier engines) blowing the head gasket is about 30% chance by 100k miles, 70% change by 150k miles, 95% by 200k. When you get it replaced, after doing everything according to the manual, torque the head bolts to 75 ftlbs and you'll never have to do another head gasket on it.

ooohh...so seems like I DO need to save up/plan on this pretty soon for my 89 Cressida! I've got almost 230K on the engine, had an explosion going BOOM! when my radiator hose bursted in June this year (09), and its still running ok (had mechanic check it out immediately) except it seems to overheat a lot more since 1 month after the incident. Maybe the engine seems to run rough at times too...one shop mechanic said the 4th and 5th gaskets are weak in Cressidas...maybe my headgasket's going out???

The problem with this car is not the head gasket. The timing cover two thousandth of a inch above the block. You got to get the block and the timing cover level. this is manufactured defects. Check clearance with fielder gage with out gasket, head over block. Again do not replace head gasket without checking. Clearance should be about .001 inches or less, check toyota clearance guide, to be shure. That will be end of all head gasket problem.