Alright I found where the water was coming from. I took the intake and heads off and found that the block was cracked in a couple places towards the top of the cylinder. Sucks, but at least I found the problem. So this is my plan. Buy the GM 502 shortblock #12568782 and bolt my heads and fuel injection on. The cam in the new 502 is the zz502 cam. I'm assuming the cam is for a carb and I'm running fuel injection, so I will have to change cams? What cam do I get? From what I can figure the 502 GM shortblock with my heads and fuel injection from my 502 GM/Mercruiser should make a fine engine. Also I'm running Stainless Marine dry exhaust. What do you guys think?

There is a guy on here that runs a zz502 he could give you a good idea if that cam will work.
What heads do you have?

Stock rec port heads.

have you thought about tunning your fuel injection to the zz502 cam. im sure the carb cam is more aggressive than a FI. may result in a few more poneys.

Thought about it, also thought about selling the EFI and going carb.