I recently purchased a 18.5' Four Winns 180 Freedom with a OMC Srern Drive and powered by a GM 3.0 litre engine. I did test engine before I bought it by hooking it up to a hose and fake lake attachment. I used for 2 weekends and last Friday my son and me took it out for a quirk cruise. After warming it up we went 1 or 2 miles at .75 to full throttle. We than slowed down to near idle speed and putted along. I than noticed a sputtering noise from rear of boat. At first I thought the bilge has left on and was sucking air. When I pulled back the engine cover I saw light grey paste similar to liquid car wax spitting out of hose going from valve cover to air arrestor. There was quite a bit in bilge area as well as splatterd on rear of boat and top of block. Although engine was running fine we shut it off and were towed back. The oil pressure did read a little low from normal reading. When we got to shore I checked dip stick and it was also covered with the paste. I also took plug off oil fill hole and it also had the paste. I assume that this is water and oil mixed. Besides a cracked block is there any other way that this could happen?