My 1fz was hydro locked when I bought it, due to a bad head gasket. There were no cracks, everything went back together just fine. (I did have the head/valves gone through at a machine shop, and I think they milled it a tiny bit to make sure it was flat) So, my vote is that your head is not automatically cracked.
Mine was #6 cylinder, which seems to be the common one. Not sure if yours being #1 points to a different problem or not.
Mine was #6 cylinder, which seems to be the common one. Not sure if yours being #1 points to a different problem or not.