Water in oil 77 I/O omc 235 hp 351W. I'm down to the block, but I've never done this before, need a little diagnostic help... When I removed the heads, water was standing on top of the pistons...should this be?? The head gasket itself appears intact and I see no visible cracks in the block or heads, although I haven't had them magnafluxed yet. whats my next step? Are there telltale signs I should be looking for? Any help is greatly appreciated.