Did you read the powerpoint? It describes the leakdown test.
I suspect it is just heads,. The early SB Ford engines did not use hardened valve seats, and using unleaded gas cases them to erode, so you burn valves, and lose compression.
Depending on your budget and needs, you can probably find some serviceable used heads for under $400. A rebuild (if it is possible) will run about $800 to $1100 depending on the situation and the rebuilder. New aluminum heads will set you back about $1300-$1500. I used ALuminum Edelbrock head on my 65 Mustang. They were very very nice!! I opted not to use them on the Bronco, however, because of the higher operating temps due to lower speeds. Personally, I woud find some iron heads, get them ported and have the valves done. Replace the timing chain with a double roller, and get a high volume oil pump. Flush the radiator and look for crap in it, and check the watrer pump. Use ONLY Permatex Hylomar when you do the reassembly.
Hard to say about the overheating. Have you checked the thermostat and water pump? I'd check those first. If the radiator is older than abou t2-3 years, then I'd have it boiled out by a qualified radiator shop that knows aluminum radiators. Some phosphate based coolants actually corrode aluminum, so it may be that inside, that giant radiator isn't so giant. I also have several old BMWs. These have aluminum heads, and BMW is VERY particular about the type of coolant to use. Everyone on the BMW boards swears by BMW OEM coolant cut 50% with water (it's blue). The worst thing you can do is to mix coolants since that can cause them to generate sludge.
I would drain the entire system, flush it with some sort of cooling system cleaner (but not phosphate based), refill with a good coolant that is OK for aluminum, and try that with the rebuilt/new heads.
HTH
S