1986 ford ranger 2.3l 4x4

ok i just got this ranger my first truck ever,well i fixed a oil line that was broke so i figured that was all but when i went to start her up she idles very high almost at 7000 rpm,she has no power at all..in second gear she starts to die so i give more gas and she boags out really bad,.then she starts to smoke alot from the top of the valve cover so i plugged it and she shot it out ,..now i have another problem! theres water in the oil it comes out like a milky grey,
1.do i need a new head gasket?
2.whats the lose of power mean?
3.would a v6 fit into my truck,has a 4 cyl svo motor
4.if a lift is not put in right would i brake my drive-shaft?
5.where can i get a cheap v6 from for like 100-200 bux

Sounds like you need to replace the headgasket but...since you said it's hot you need to make sure the head isn't warped, and yes a v6 should fit in, your year ranger came with an available v6 it was a 2.9 I believe unless your's is carbeurated then it'd be a 2.8. And on the lift question, if your putting an average 2-4inch lift on it, you should be fine with the whole driveshaft ordeal. And try a junkyard for a motor.