From what I recall, the origional weren't graphite, but another composite that did not distribute heat as evenly as graphite and thus caused warping, they also contained steel rings. Since the HGs in the 95-98s were insufficently torqued (there's a GM service bulliten regarding the main bolt repair and new torquing procedure that puts more clamping force on the heads) coolant or even moisture from the air could seep in and corrode the steel rings, causing gapping or depending on the location and sevarity of the corrosion, gasket failure.
I am currently looking into possibly replacing my N* if the source of my rough idle on cold start and Hydrocarbons in the coolant are coming from a leaking HG. It could be a number of other things but I will be calling Jasper Engines soon to find out exactly what the difference in the HG is and who manufactures them.