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671 Water in oil

"Hello,
I have just installed


"Hello,
I have just installed a rebuilt(?) 6-71 and started it for the first time. I immediately noticed there was no oil pressure and shut the engine down from idle power. On doing some visual checking, I noticed the oil dipstick and upper head area (with valve cover removed) that there is what I believe to be water mixed with the crankcase oil. In the small amount of oil collected in the upper head the appearance is white.
The fresh water level has remained full and I am watching the level very closely.

This engine was recently bought and removed from an orphaned boat and engine records are non existant - just word of mouth that it had been rebuilt and I confirmed this by removing as many panels as I could and am 80% positive that the claim of it being rebuild is true. Note that it sat for an unknown period of time after the rebuild without being started and without oil but with freshwater in the cooling system (is it possible that water could have leaked into the oil cooler past a seal??) and the new fuel filter contained fuel.

What should I be considering as a source of the water leak?
From past experience I believe it could be the Oil Cooler leaking fresh water into the oil, a leaking head gasket, cracked head or cracked engine block OR there is a possibility that water condensed and collected in the block oil passages while sitting unused.

Does anyone have a step-by-step method of troubleshooting a problem like this starting with the simplest check leading to the most difficult??
Any suggestions would be greatly appreciated!
Thsnks,
Jim H."
 
"H20 IN OIL, POSSABLE CRACKED

"H20 IN OIL, POSSABLE CRACKED HEAD-LEAKING WATER HEAD SEAL-CRACKED BLOCK OR HEAD. HOOK UP PRESSURE TESTER TO COOLING SYSTEM AND TEST.NOT OIL COOLER IT WHOULD CAUSE OIL IN THE WATER.
OIL PRESSURER HOOK UP MANUAL GAUGE NET TIME YOU RUN."
 
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