Alright, here's the deal. I am leaking oil, but not very badly. There is only a small puddle im my garage, and it is right below where the transmission meets the engine. I go through about a quart and a half of oil every oil change. When I pull in my garage I can smell coolant when I get out, and there appears to be some mixed with the oil on the floor. When I got my car dynoed, I had 123 HP at the wheels, so now I'm a little confused. With a bad had gasket, wouldn't I lose compression, and therefore lose power? Does this sound like a head gasket?

If there is coolant in your oil then it is almost certainly your headgasket. it just might not be bad enough "yet" to cause a compression/power loss.

www.TeamKLR.com
1997 Silver RS
12.3@118mph,20psi, race gas(drag radials)
Wiseco 10.5 Pistons
Eagle Rods
T3/T4 Turbo
Custom FMIC
Greddy Exhaust
440's

sounds like headgasket to me. inspect the block really well and do a compression test. Is there anything coming out of your exhuast?

Try a leakdown test. if you leak pressure into the cooling system, its the headgasket.

It could also be possible that you have some pitting in your head that is causing your oil and coolant to escape past the head gasket. It sounds like you arent losing much power, which means that your headgasket is probably sealing fine around your cylinders. If this is the case, a leakdown test won't indicate if your actually having a leakage problem at the head. If your coolant and oil are actually mixing in the motor though, your oil will look all "frothy" when you change it.