Water in oil AQ170b

[skipjack24]

Just picked up a 1975 Skipjack that hasn't been in the water for three years. I have water mixing with the oil. Took off the oil cooler and found many small pieces of rubber in the holes where the water circulates through to cool the oil. Compression on all cylinders is above 95 PSI and it doesn't very much between cylinders. It looks like a failed valve seat o-ring, not a blown head gasket. Before I take the head off I'd like some advise on whether I should buy a new gasket set for $275, or is there some other less expensive option? Removed head and found water has leaked into cylinder #1. Head gasket looks fine too.

 

[skippyon1o1]

Re: Water in oil AQ170b

you are not thinking of using the old head gasket are you?
define leaking ,white and milky?
I doubt water would get in there without it running
mine are above the waterline