lurtch, that head looks pretty scary. I had a 280c for about 15 years. At around 175,000 miles I pulled the head for a valve job and found similar corrosion (not quite as bad as yours however). I brought it to a shop in Houston where they ground it out, welded it up, machined it and did the valve job. I drove the car for 50,000 more miles before I donated the car away!
After re-touquing my head on Saturday, yesterday I changed the oil (which didn't look bad) and then drove the car for a few hours. So far, no loss of water. I also changed the expansion tank cap so that may also have helped.