battleship grey

so I pulled the original powertrain out of my 73 (258) and am preparing to swap in a 258 from a 78 with a t176 and d300. when i pulled the new powertrain i drained the motor oil. the motor got set outside for a while with bag doubled over the carb secured with a bungee. i noticed a while later that the bag had worn through or what ever. i put a bucket over it and before this winter set it back into the garage. now i am lifting the same motor back up and noticed water dripping from the drain plug. i pulled the plug entirely and got that battle ship gray gunky crap, about maybe a pint to two pints total. here is my question. can the water mix without the motor running? did i mearly allow a pint of water to enter the carb and got past the rings? or do i have a cracked block/ blown head gasket and didn't get all the oil out the first time? my old motor ran but ran very badly and had a bad compression test, but i can put it back in if this block is cracked.

 

can you rotate the engine by hand ? (piston rings rusted)
if it were me, I'd pull the valve cover and see if the gunk is there as well.
If it is, that means pre-existing condition you may have had before you pulled the engine.
If no gunk present, then I would think maybe it's just water that somehow ended up in the crankcase.

edit: maybe pull the head off depending on what you find above ?

 

i had the valve cover off before and it was junky, but it was a darker, more like a motor has been sitting for 5 years gunk, (which it was before i had it running) but you are the third person to tell me to spin the motor, so that i will do in the next few minutes

 

you might want to pull the spark plugs and check for water as well.

 

just pulled the plugs to spin the motor and 5 and 6 were wet and i can see standing water in 6. so i suppose i can continue and say prayers of thanks to the jeep gods. ill run a quart or too of oil straight through the motor and run some mmo to be cautious

 

I could also see rust in most of the cylinders even though the motor turned easy with about a foot and half of leverage

 

I think you should pull the head and take a peek.

 

I am considering that, i was hoping to get it running this week though. i am afraid that if i pull it apart i'll find something wrong and not have the heart to put it back together wrong. but there was a lot of crap in the cylinders from what i can see ( the previous owner is one of the dumbest people ive ever met. cylinders 1 and 6 had different plugs from the rest of the plugs). I don't feel like putting alot of money into a 258. seems like a waste. If i pull the head it would only be to clean out the cylinders and replace the gasket. Is there anyway to clean out the cylinders without pulling the head i'd be interested. things like mmo atf seafoam i dont know anything that would clean it without throwing a valve would be nice.

 

I can't see the effort to install and run the engine without making an effort to verify mechanical condition of said engine.
Pulling the head now let's you inspect the bores and condition of suspect head gasket.
not pulling the head is just a roll of the dice.

 

x2, pull the head and have a look. In a day you can pull the head, pull the pistons, clean the cylinder walls and pistions real good and reassemble everything. I had to do this to my 401. Hate to say it but I've got to get new pistions, I think.

But the least I'd do is pull it apart, clean it with a scrubby brush (I used a well worn green scotchbrite pad) and reassemble with assemeley lube and oil. Take the valves out and do the same in with the head. You sould be good to go unless you find something else wrong........

 

and it gets better, i just snapped the bolt in one of my new motor mounts#%#@^&#$@#&%#&@^%&#@^%$#@^@Q&@$%#@