Ira,
There is no easy answer to your questions. First, the Gillig chassis 3208 Caterpillar belt system in your Beaver requires a matched set of belts for the main pair, and if you are using unmatched individual belts, belt failure is almost guaranteed.
Second, if you are getting compression leakage into the coolant, you have either a bad head gasket or a cracked head. So where to go from here is like you said "a crap shot", but you can make it an educated one. If the shop that just installed you head gaskets will not stand behind their work, you can have the heads removed and check the cylinder walls for damage by turning the engine crankshaft to make the cylinder walls visible for all cylinders. Although you can check the cylinder walls in this fashion, you could possibly have a scored piston skirt, but it is unlikely if the cylinder walls are good.
While it sounds like the first shop that you used is less than competent, I would not place a lot of faith in the second shop either if they just want to replace the engine in your coach without finding out what is wrong with it. A diesel engine is normally much more economical to repair than replace unless there is a major failure like it threw a rod. Any shop that wants you to spend $20,000 on a repair should be able to give you evidence of why it is necessary, and not just say that you will hate them if you don't.
However, I am writing this from a position of never having seen you coach, and my position is a generalization that may or my not apply to your coach.
Gerald