Coolant in the Oil on 1998 Subaru Forester

Had the Subaru checked out about a year ago, and they informed me that they had found coolant in the oil. I opted not to have the service done, as the dealer began the estimate around $1200+.
Less than a year later, the car has developed a habit of overheating. I went to a different shop (3 separate times, in less than 2 months) to have the radiator hose replaced (top hose), then the heater hoses, then the bottom radiator hose.
Still, she won't go more than 10 or so miles before the temp gauge sky-rockets.
I've asked a few auto-knowledgeable friends, and they say I'm better off getting rid of it, instead of trying to get it repaired.
Thing is, it's paid off, insurance is low, and it serves most all of my needs of an all-purpose daily driver.
Any ideas?

Asked by for the 1998 Subaru Forester
I agree with Matt. I work on a lot of these Subarus, get a repair shop to do a "block check". It is a chemical check that looks for the presence of Carbon Monoxide in the cooling system, Carbon Monoxide is a by product of combustion and will only be present in the cooling system if the head gasket is blown or the head is cracked.
2 answers
I've heard that these cars have common problems with the head gaskets, which sounds like what you were diagnosed with last year. Letting that go unrepaired may have caused more damage, as I also believe that cracks in the cylinder heads is not unheard of.

The repair would be very expensive, regardless of whether it's a head gasket or cylinder heads. You have to weigh that against how expensive a newer car is.