Re: A water infused diesel question
Depending on the clearance issues... What you may want to try and do is drain the oil, and while dry, put some kind of heater in there to point at the block. Be VERY careful about flammability issues. You may not be able to do this.
The idea is that if there's any moisture inside the engine, evaporate as much off/out as you can. Moisture can kill a diesel. If you can't do this, fill it with cheap oil (the cheapest possible, but still specified for your particular engine) to see if you can fire it up and get it running before spending any more on it. If it runs, then get it up to operating temp if at all possible. Make sure the cooling system is intact and functioning, etc. Once there, then you'll want to drain out that oil and replace it with the correct stuff.
I have friends that own an auto shop (Very reputable. family business that's been there for 30+ years now and the best shop in town), and they keep "blended" oil handy for initial starts on replacement engines, etc. This is basically all the oil that's left over in the plastic bottles from regular oil changes, etc. They have a drain setup they put them in upside down and it all drains the last of the oil left into gallon jugs to use for things just like this. You're not going to hurt an engine using this type of method, but it's not something you want to use for more than getting it running initially.
What you need to find out before spending any serious money on it is if it indeed runs before deciding if you want to spend any more cash on bringing it back.
-Jeff