i had the same problem with mine a few years ago its a common fault on puntos ( around 55000 mile). i repaired it myself at a cost of £100 and that included a head skim. dont forget to change oil and filter. then get rid before it becomes a money pit.
firestarter
November 2010
Hi Jim, obviously replacement of the head gasket is the best solution - if that's the problem. When a head gasket is on its way out the tell-tale sign is water in the oil which is visible as a white, jelly-like deposit on the underside of your oil filler cap. If it's a minor water leak elsewhere in the system, you could try a 'rad-weld' type treatment that seals small gaps. Most good car spares shops sell rad-weld.
I hope this helps.