Just had the same problem
You can write me at r_clack@hotmail.com for more details. I had a head gasket fail (symptons are low pressure in two cylinders, mine were #3 & 4). I also had a broken valve spring on #4 from rust! This cylinder was not firing for months. The water on mine likely came from cranking the engine over with the water intake on and the muffler full of water (some was likely head gasket related). When this happens the water backs up into the exhaust manifold and into the oil. It took 5 oil changes to get my oil saltwater free. If it is not a head gasket or warped head or over cranking the engine then you may have a serious problem. This could be a water jacket leaking into the oil from a rust hole. I ran my engine with a bucket of dyed water to verify that my oil never turned a bright shade of red dye to verify that this was not the case. If you are a little bit mechanical replacing a head gasket is easy. All you need is a stud remover, two new gaskets (takes two), engine access, etc. I had never done it before and it was easy, but time consuming. Here is a great source of information (he will answer all your questions) and parts as well as a stud remover. http://www.moyermarine.com/
