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fresh water? it's from the rad right? if so its not fresh lol. but it could be just as simple as a head gasket, were was the water at? cylinder or oil. if it was the cylinder it could be head gasket or heads cracked/warped if its in the oil it could just be the intake gasket blew out
Sorry to be butting in here. I have not been here in awhile. But, I am going to guess this guy is full of BS? If its fresh water, and no rust? Why can't it be rebuilt? The water had to have gotten in there somehow. No hood on the truck but the motor was wrapped?? Did you ever have a hard rain??? Maybe a spot you missed? Was the intake or carb on the motor?? I would not give up so easily if it were me. BTW, if my memory serves, this is an Heche en Mexico Gm Goodwrench motor and they really are not so bad from all I hear. I have one myself that I bought for $100 with a 700r4. Get this, the only reason it needs rebuilt and I got it so cheap, is the idiot I got it from left it sitting out in the weather and it filled up with "fresh rain water" then it say for a week and started to rust and seized. Easily fixed. I have it unsiezed by draining the water by turning it over on an engine stand. The put diesel fuel in the cylinders thru the spark plug holes and put the plugs back in and let it sit outside in the direct sunlight and get hot this summer. Turned the balancer with a pry bar about and inch every hour after it soaked in diesel for 2 days. About the 4th inch I moved it, that was it. The motor is free as can be and the rust broke loose. I am probably just going to do a hone and rering it since I took the heads off and their is no ridge to speak of and I can still see some crosshatching in the cylinders. That engine is a 4bolt main, with Powder metal rods and a 2 piece main seal. I'd sure look again into rebuilding it, just need to find out how it got water in it. Good Luck.