I really can't tell how bad the head is here or if all of the damage was done to and caused by the head gasket. I would advise against running a stock v1 head gasket on a kit, or you run the risk of that gasket expanding into the bore area and getting torn up by the piston...which is what I think has happened here.
You might need a new piston, but you also might be able to sand/file that off and clean it up. Remove the rings to do this work, clean off the piston to remove any debris, and reinstall the rings. You also might be able to save that head by sanding and filing as well...it's worth a shot, and I've seen worse. Then go to treatland.tv and buy a copper head gasket to match your kit, or make your own. Finally, install and blast into the sunset.
Good luck, and keep us posted!