There has been a lot of good advise given here.
I have some experience with the ISM engines and I can tell you that there tuff and will take a lot of abuse, but extreme overheating can cause serious damage. I have seen cases (gas) where piston have melted themselves to the head and more nitrous fatalities than I care to remember.
It's really hard to diagnose the extent of your problem without hearing/seeing it myself, but one thing that concerns me is that you are confident that you have excessive blow by. Once again it's hard to know if our two versions match so here are a few suggestions.
Change the oil and filter and get your radiator back on. Start the engine and pay attention to how it starts. Does it start as normal or drag along and spin over several times before starting. (heat the glow plugs)
Run the engine for a few min and shut it down. Confirm that the water and oil isn't mixing. Be sure to check for both water in the oil and exhaust in the radiator.
If everything checks out start the engine back up and run it at a mid idle (1200 1400) if you have a mechanical oil pressure gauge it would be a good idea to verify the system pressure. Pay attention to the engine blow by and any other unusual noises. If they stay the same or improve continue to bring the engine up to temp, if they get worse shut it down.
If you make it to normal operating temp and the blow by doesn't improve then there's several causes for this but I would suspect that you have ether broken a few rings or crystallized them. Well, you could have also burnt a valve(s) which can cause blow by and could explain the lope.
If the blow by improves and there's no other major signs of trouble then I would run it. (Remember you can live with a lot of blow by)This doesn't mean that you are home free, but it's a good sign that you might. I seen some amazing things, like engines running with broke Cranks and I have seen many engines (including some of mine) that have been run seriously hot with no major damage done. I ran a old worn out 460 so hot in a mud hole one time that around 275+ it blow the radiator hoses off, not caring, I put them back on and fill it up with cold water (a big no no) to my surprise it cool back down and continued to run and I was able to whoop another chevy.Those days are gone now...aluminum cost to much to be stupid.
A compression test will help you identify a internal problem. I don't know the tread size right off, but if you haven't found out let me know and I will try and look it up. If your test confirms that you have a weak cylinder there is one other thing you might could try before breaking into the engine. It's pretty over the top. I seen it happen only a few times. I'll save that advise until you ask.
One more thing...I also have many $$ worth of conversation pieces made by Bill Miller, Velnoly, Blue Thunder, Brooks, Ford Motorsports and a few others.