So I guess it's the manifolds leaking then..

Boy! those are old Stainless Marine I think. I have a sm block set on my wall from 74 when SM was in a garage. Junk em.

I just took one of them off and there was some water in the exhaust part, and 3
Out of the 4 exhaust ports on the head were Wet..

Before you turn that engine over remove the spark plugs . You don't want it to hydrolock and bend or break parts or flatten bearings . Turn it over with plugs removed to exspell any water that may be laying on top of pistons . Spray WD or Marvel mystery oil into plug holes and crank over to stop rust on cylinder walls . Get the milky oil out of her . Spray WD on exhaust valves also . Good luck . I hope you can save her .

I will do that tomorrow and ill remove the other manifold as well ill keep you guys posted thanks a lot

Just
Took
The other manifold off and there is also water inside the manifold and the exhaust
Ports on the head are wet

would be better to start the motor, even with no manifolds at all. run about 30 seconds. will blow out all the water (on the top of pistons) and the heat will dry out the little left. drain and replace the oil also. if water in oil, might take 5 oil changes to get it all out...another possibility. this is a big block. i am assuming raw water cooling, not antifreeze and a heat exchanger. salt water? or fresh? the valve guides rot out and pass water direct into exhaust passages.

do not attempt to start the engine,as stated in an earlier post,the cylinders may be full of water,you don,t want to hydraulic the engine,pull the plugs and turn engine over by hand,use a long ratchet and a 3/4 socket on the harmonic balancer bolt.if you found water in some of the exhaust ports,id bet some got in some cylinders.

I've already cracked it up and it starts just fine, you think the valve guides might be rot? They only had around 1 hour of use since the rebuild

I had a friend with an old woods truck with no manifolds on it and he started it and the noise and fire shooting out of the heads put me to my knees I was laughing so hard (with my ears plugged), I can only picture it in an engine compartment!!

Get a set of manifolds and be done with it