Re: water in oil
I might be in the same "boat" as you, so I figured maybe both of us can benefit from other peoples thoughts.
I have a boat with twin Volvo 5.7Gsi motors which I believe I found water in the oil on one of the motors as well. The color of the oil I recently drained was that of chocolate milk. Anyway, I drained that oil, and tried flushing out the system with some "experienced" oil that was in decent shape (at least it was better than what was in the engine) just to try to get as much of the crud out. With the used oil, I ran it for just a few minutes, then drained it. The color of that was better than the original oil, but still somewhat colored; I assumed it was left overs from the previous oil, and draining this would do exactly what I wanted it to. I then put new oil in the engine and a new oil filter. I ran it and it sounded good and ran pretty good too, but for some reason I didn't check the oil. I guess I assumed I was in the clear. I checked the oil today, and found it looked the same as the original oil I pulled out.
I'm also not really sure how the water is getting in.
I just bought the boat, and unfortunately I'm sure it was used as a saltwater boat since it came from Florida and had a decent amount of corroded parts. As such, I've already spent a good deal on replacing many things, including all 4 exhaust manifolds, all 4 exhaust risers, had one set of heads completely redone with all new valves. This was really the last thing I wanted to find.
What did your oil look like? Did it look the same as the chocolate milk I mentioned above?