I pulled the dipstick and it shows black rom the new oil.
But, but, but, new oil is clear not black unless it's got a few hours on it and then it's not new any more.
I'm sorry but I can't understand what you mean by "the pan" and "the oil pan". You seem to interchange both of them and that's where I get lost. I also can't understand why you removed the oil pan when that is one monumental SOB of a job to do in place. And how could you see a couple of tbsp. of water in the oil pan when the water sits at the bottom of the oil
Perhaps if you could recount your exact steps from when you first saw the white smoke, using the terms "engine oil pan" and "FG pan below engine" we might be able to throw some light on the problem.