cylinder 1 is confirmed dead...we did a pressure test...it just isn't holding up. what should i spend to fix it?

 

If it's just a burnt valve you can put in a new valve for about $5, then $30 for a new head gasket.

The most certain fix though is to swap the whole engine with a used one that has a guarantee.

 

You and the mad scientist gotta rip apart the block, and find out what fried.

Could be valves, or could be a bigger issue with the cylinder/piston. In either case it's worth inspecting to figure out what's actually going on, but in all likelihood as with what mk378 is saying, it'd probably just be easier and cheaper to swap in another D series.