I just purchased a 2003 Supercrew that had been wrecked, but somewhat repaired. I knew the owner said it had a blown head gasket. It has water in the oil (small amount asi it is lightly milky) and water starts dripping from the exhaust after it has run for a few minutes. I did not run it long, but throttled it up to warm the engine. It started dripping soot filled water from the exhausst connections. Any suggestions??? I bought it to put a 4bt in it anyway, but want to sell the motor with the ability to tell the buyer the skinny on it. I drove it on the trailer and off with no apparent loss of power noticeable.

 

You cannot just run the engine from a cold start like that and not expect water out the exhaust before total heat up.
That means the thermostat opens, the cats are hot and the full exhaust is to operating temperature.
The cats convert combustion by products to some water, hydrocloric acid etc and condensation occurs and you see the end result being pushed out..
The muffler is large and holds a lot of water as well. It should have a drain exit built in.
Soot is the normal thing inside the muffler and pipes, expecially if the system is not run to full operating temperture often.
A good operating FI engine will show a tail pipe exit as a light grey to nearly white if there are no problems or abuses.
As to water in the oil, there must be still a gasket leak or the oil was not changed after the head gasket replacment.
Just removing a head may let enough water get into the pan.
Drain the oil;.
If water comes out first, there was a good amount in.
Never run any motor with known amounts of water or gas. Not good from bearing lubrication.

 

Perhaps i should have worded it differently. It is in fact coolant in the exhaust. Agreed on the oil/water (mayonaise) it should not be run like that, but it was necessary and i'm not concerned about the engine. I don't want to ruin it, but i don't plan on using it either.
Thanks