Re: water in oil
could be related, could not be related... change the oil and run it again, if water in the oil again then uhoh.. thats what i would do... if it still runs, run it, usually if a motor wants to go bad, it will, if you want to make it perfect then pull the motor and take it to a engine builder and then will do it all for you for a bunch of cash
usually when you have any kind of foreign fluids, you usually have a big problem...
im sure ill get crap for this post but hell, a 30 year old motor usually gives you crap, and needs to get rebuilt especially when in a marine environment... from what ive got from the marine world, is usually when something goes wrong, its twice as bad and twice as expensive.. good luck..