After putting our 1986 1.9 DG through its paces earlier this year to make the ferry back to the UK, began overheating every now and again, the temperature gauge wouldl often swing from centre to high and sometimes sit in the middle, a few days after returning home the oil pressure light light came on along with the buzzer (just about giving me a heart attack)

Upon checking the coolant tank,the level was low and full of a brownish foam. I did a compression test, and 1&2 were low, with 3&4 appearing normal. I checked underneath the low compression-suffering head and there is evidence of a coolant leak from the water jacket seal. A plastic flange that joins a coolant line from the tank to the head also appears to have partially melted under heat, causing even more coolant to leak.
My question to you all is: are these symptoms all linked to a common underlying cause? Thanks for reading, your input would be much appreciated.