I had it twice, first time was faulty head, 2nd time due to leaky exhaust.

What I did (and recommend) is to drain the oil, then fill the engine crankcase full as possible with diesel. Use a oil priming rod (remove distributor) and drill to circulate the diesel for few minutes. Drain, repeat this process, and it will get practically all the water out. Cheaper, easier, faster, safer than multiple oil change technique.

Thank you for all the feedback and help! We did check the spark plugs and they were a little wet. I am having the motor pulled now to check for additional damage. Looks like Jacksonville Poker run is out. :(

Most likely the hard staring was because of the water in the cylinders...but maybe not...you are making the right call by pulling the engine..one thing to consider though, when you changed the oil and still had water in it after running it...Even if you did not have a leak, once water gets in it will take a few changes to not see the signs anymore...in other words, after your oil change, new oil will get contaminated by all the slime buildup and it will look like water is still getting in untill it is cleaned up..it is very hard to tell sometimes..best way to do it is to clean it out by hand, valecovers and heads & drainpan are usually the worst areas..bottom of intake and top pan as well...good luck, I hope you get good news!

try to do a compresion test before the take it out, my save ya some headace or head ya the right direction. It suxs when its a new ride with probs:(

Best of luck and let of know what find.

Rob:D

Strip, you are right. My engine guy didn't do a compression test, b/c he was sure that we had a bent rod with the drop in oil pressure. We pulled the motor and tore it down. NO DAMAGE. :) We did find that both headers are leaking. This is something that I specifically asked the engine builder about before I bought the boat.

Did the boat sit with water in the headers before you water tested it? seems like a lot of water to notice in your oil (that would have to seep past your rings) when not running.I would think while running most water would get blown out. I have had problems with bad exhaust manifolds leaking water into cylinders and finding its way to the crankcase but it took awile to get there. I would do a compression check for sure before running it. If that checks out ok you should pc the oil coolers, check intake and gaskets, another possabality is somebody used the wrong head gaskets, good thing you were in fresh water if you didnt run much after the op drop youll probally be alright. good luck! hope this helps