Thanks for your replies guys. Tinternet was playing up yesterday and i wasnt able to log on.
jtanguay - No cracks! At least there some good news.
biglockchev/tigman - Cant test any coolant unfortunately as its all drained. It turned a lovely grey colour during that last trip which i guess was due to contamination by the exhaust gases. Wouldnt this therefore make tests after the event a little inaccurate as my common sense is thinking the coolant would have been pumped full of higher co2 gas from engine so pH would have altered. What i should have done is check it months ago when i started loosing coolant! That red colour on HG was the colour of the coolant when i got it so i think you're both right, something not quite right was put in it.
clbanman - cheers for the info. This has happened in about 12k ish miles so i'll check the grounds on the car. The guy neglected to mention that you needed some wandering electricity for this to happen and my A level chemistry is little more than a distant memory (mainly of trying to set fire to magnesium ribbon whenever possible).
boosted_diesel_84 - No offence taken

The head was brand new and has 'AMC' stamped on it, but the invoice lists only a VW part number so not sure where its from.
zukgod1/jimfoo - dont know if we get evans coolant over here. Presumably anything is better than what was in it! Random fact from machine shop guy, although not sure how he knows it : F1 engines apparently use distilled water for coolant as it carries heat better than ethyl glycol. Great for a track no doubt, but rubbish for sitting on your drive in winter.
My OPTIONS are to
1. get this one welded around the water ports that are eating into the gasket rings around the cylinder (as recommmended by machine shop) or..
2. Get a 2nd hand head from a scrappy as cant be sure what else is lurking beneath... both would be skimmed flat.
Which do you reckon im best doing? Its swings and roundabouts i suppose.