Overheating could have caused the head gasket to fail, or the head gasket could have failed causing the overheating (chicken vs the egg arguement).

If you decide to have the dealership repair the head gasket, have them do the timing belt, water pump, and pulley bearings. If the cooling system was at fault, at least the water pump will be new. They will have every removed to replace the timing belt when the pull cylinder head.

 

It is likely the problem pre-existed your service by them and was defective when purchased. I would insist on repair or reversal of purchase. You might want to take a lawyer along just to impress them that you mean business.

good luck

 

Update: After 2 hours of pleading my case the dealer agreed to pay for the towing,install a replacement used engine, and paid for a car rental at no charge to me. I definitely put my foot down on these guys as they initially wanted me to pay 50% of the cost but I wasn't having that.It must of been the DMV Investigations form I had in hand that got their attention I think. Having the timing belt and water pump replaced while everything will be accessible to them is definitely a good idea. Thanks everyone for all your input and support. It's situations like these that makes me glad I am a member of this wonderful forum. By the way, my car is a 97 Honda Accord EX