Hi its the head gasket, you cant see no water in the oil on these engines like you normally can on most oil caps, pull the dip stick out and look on the bottom any sign of yellow gundge will be the head gasket, sometimes it is only a very small amount.
These cars always have the same problem, if i was you I would do the head gasket and waterpump at the same time, water pumps are only about £20 and wont add much to the bill if doing them at the same time.
As there is no water coing out of the bleed niple then it must be air locked somewhere, problem is when they get like this the gasket will blow anyhow.
Hope this helps
Regards
Dan
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