Happy New Year Robert!
Thats the good news....... the bad news is it sounds like your head-gasket is blown, sorry!!!
the gurgling could be exhaust gasses getting into your cooling system.
From cold start the engine (with the water filler removed) and while its running put the cap back on. give it a couple of minutes and quite a hard rev for about 5 second bursts. while its still running CAREFULLY take that cap off and if you've got a gush of water bubbling out of it then head-gasket.
This is just going by what you've said, so hopefully its not that thats wrong.
ALso check your oil filler cap, if theres stuff on it like mayonaise thats another sign of head gasket failure!
;-)
TamTheBam
January 2005