WOW, reversion did that to your oil. Maybe that's what happened to mine. I drain the oil today and it looked just like yours. You asked me what cam I had and exhaust.
Well the cam is a LUNATI 234/244 @ .050 and lift is .629/.612 on a 114 LSA and for the exhaust I have brand new EDDIE MARINE with long risers. But if reversions is my deal I guess they are not LONG ENOUGH. With this damn project nothing is ever enough!!!!!
The engine pic is when it was ALMOST done and hooked up.
:lolhit:

Ouch..... I know the feeling all to well....... As far as the oil goes, my level increased by almost 1/2 a quart of water so that mixed with 9 quarts makes for a tasty looking shake! It does not take much water to get the oil milky...... Your EMI manifolds are about the same as my Merc 496 units.... Do you have turbulators installed? I see you have a spacer in the port side I assume is for an O2 sensor. I have the same setup but in both sides. Your risers look plenty long and I assume they dump the water at the rear? I initially used the short risers without turbulators and had massive reversion.... My cam is a little smaller than what you have with 228/[email protected] 611/595 lift on a 114LSA..... After I put in the turbulators and installed the 2" taller risers I had no more water issues......... I would try the turbulators if you don't have them in. They cost about 12 HP with a healthy engine but well worth their weight in gold if they keep the water out....... I think we have had some thread creep here about breaking in new engines but it's all good!!

I forgot to mention that when running the engine you can simply remove the O2 plug and look inside and you can see the water droplets flying around in a vortex if the water is reverting....I could clearly see that with my original setup....... did you run an O2 sensor yet? They don't like water and will fail in a heartbeat if they get wet. The Merc engineers used the turbulators for a reason and I bet you will be OK with them installed. You have more cam than me but a longer riser as well but from what I have read anything over 230* @.050 duration is asking for trouble! I do have about 10.2-1 Compression so I have no idea if that factors into this at all. I will post a before/after reversion pic!