Punto GT Head gasket? - mikboo
-Idling/running problems(during idling the engine sometimes hunts between 300-1200rpm especially when cold.Whilst trying to drive in this condition acceleration feels jumpy to say the least.)
-Gradual loss of coolant.
-White exhaust smoke during operating temperature.

The car has been to Fiat a few times and all they have done is changed the Lambda sensor to no avail.Charged me £200 total for the 2 visits.

No engine overheating.Does this sound like a blown gasket?If so what sort of cost do you think I will be looking at with an independant garage?
Punto GT Head gasket? - RichardW
The last two sound like head/gasket problems, the first, not so sure about. Look for:

Residual pressure in the cooling system - take the cap off when cold - there should be no hiss if there is, your system is pressurising (also check the top hose, if it feels soft when cold but goes rock hard with the engine hot, that's a bad sign).
Bubbles in the coolant - carefully remove the cap with the engine running, and look into the coolant, a steady stream of small bubbles, increasing with engine revs is a sure sign.
Oil in the coolant - floats on the top, looks like a rainbow
Water in the oil - makes mayonnaise under the filler cap, and in bad cases on the dipstick

It possible to get a garage to stuff the probe of their exhaust gas analyser in the header tank as well to see if it reads any combustion products.

Sorry, no idea how much you're looking at to do this at an independent (and he won't either till he gets the head off and assess what head work needs doing), but I would get a second opinion, and then ask what Fiat are going to do about wasting your time and £200!!

Richard