I'm at a bit of a loss on this one I still have a few ideas to try but any help would be appreciated. First of all the engine is 4.3lxh Gen+ (I don't have access to the S/N's right now) that was rebuilt approx. 2 years ago. My problem began during the last 5-10 minutes of a 5-6 hour run last week I noticed that my rpm's began dropping off by around 400-500 rpms even at wto my normal reading of 3500 was down to around 3000 stayed that way for a couple of minutes then gained about 200 rpms and that was all she would give. When I put the boat in the water the next day it took a couple of tries to crank which is unusual, and seemed to idle a little rougher than normal. More importantly I don't have any power out of that engine any more, it runs up to around 2200 rpms and boggs down like it's shoving a barge. Time to go to the shop, I've noticed there is an occasional knock coming from the engine (reminds me more of spark knock than mechanical) upon hard acceleration or decceleration. So here's what I know... the fuel pump, spark plugs, plug wires, distributor cap, rotor, and coil are all less than 2 months old; fuel pressure tests well within specs, , I rebuilt the carb even tried switching carbs with port engine(port runs better than ever now) replaced fuel filter, checked timing it was dead on and showed advance upon acceleration. Compression test bothers me 135246 respectively 180 120 150 170 150 150 no significant change when wet test was made, furthermore there are some minute flakes of metal in the oil not huge amounts but visible if your really looking (and honestly the sight of any metal at all makes me very worried), last but not least I have a rather large amount of emulsified water in the valve covers it's thick and the breather tubes coming off of the valve covers seem to be oozing it out (if this were one of my cars I would have the engine out the same day over a sight like this), there are also trace amounts of water on the plugs in cylinders 4 and 6 just drops on 4 and enough to fill the cavity around the electrode on 6, no water in the oil. There you have the long and short of it more so the long I suppose. Short of pulling heads and digging in I can't really think of much else to do but I've been impressed with the combined knowledge I've seen in other posts and I figured it would be worth a shot to see if any of ya'll had any other ideas. Thanks ahead of time and if there is anything I've forgotten just ask.
