Search on here for FSM for a hell of a deal....you can thank Trollhole later
It sounds like your system was toyota red at one point, and had green coolant added. They dont play nicely together, and create a gunk like what you described.
Get the valve grind kit, they are approx 350 dollars or so. I ordered mine from Macgregor Toyota ( i think...in Virginia). Google shopping will reveal the various vendors and prices. It will have all the gaskets, seals, etc, you will need. When you send the head to the machine shop, have them pressure test it (preferably warm), hot tank it, deck it if necessary, and replace the valve stem seals. Make sure you find a shop that is familiar with this engine and head, BEFORE you commit to them.
If you havent already done these, go ahead and add the following extra parts to the order.
Fuel filter
PCV Valve and gasket
Oil pump cover gasket and screws
Front crank seal
Water pump.
Fan Clutch (unless you know yours is working properly)
Pesky heater hose kit, or bypass kit.
Heater control valve up on the firewall
Extra green stripe or yellow stripe hose to replace all the short pieces on the firewall to the heater cores.
It hurts once by not going cheap, it hurts more than once going cheap, and having to go back into it.
Good luck