Water in the oil! I have an engine out of a 74-260 Z that reportedly has a blown head gasket with water in the oil. After pulling the pan and head, the inside looks pristine. The engine has 92,00 original miles on it. The oil doesn't have much water in it. The color is dark grayish brown and very opaque. Evidently the engine was not run very long with the emulsion of oil and water. My question is if the head gasket is not leaking, where did the water come from? The only place in the head gasket that looked bad was up front where it overlaps the front cover. This is the original engine out of the 260 & I'd like to use it. I'd appreciate any and all ideas that you may have. I will be pulling the 75 engine out, that came in the car, and will probably sell it to finance more restoration. I also have a complete 71 Z with a very rusted out body but full of very usable parts if any one is interested. location is Portland, Oregon. Thanks Mark