See my latest post on the other thread. I'm not taking anything at face value. I'm taking in all information and processing to figure out what to do. I'm starting to think there is a head gasket and/or crack somewhere. Not sure an external (like oil cooler) is adding up. I will continue to think this thru but I am entertaining the idea of a new motor. Right now the new GM 502/425 is sounding real attractive if a repower is needed.

The main issue I see is leaving the milky oil (water) in the motor for months. If you do decide to use your old motor for a rebuild it will be f__ed by the time you do. An oil change is not going to get it all.
Second I would find out what happened before I would move on. You will kick yourself to find out its a bad manifold or gasket is why you just spent 10 grand.

I already said the water/oil is gone and fresh oil in the crankcase

Was it run with clean out then oil changed 2 more times and even if I bet there is still water in there.
I've been there and have seen where it goes and what it can do.

It usually takes 2 or 3 oil changes to get all the water out and the engine has to be run up to temp.

and the hotter the better (within reason) .....m

From my experience, the first thing to check is the oil cooler. The #2 suspect would be the intake manifold(especially if you're running in salt). Third is a gasket. I'd try to eliminate those before investing big money. I also agree with other posters on multiple oil changes. At least two or three times.