You need to use at least a 5 micron filter to get all the crud out of the oil. Some folks use a centrifuge to remove some of the junk and then heat it to remove the water. Water will not just evaporate as the oil is pushed into the cylinder and water does not compress very well at all. It is a good way to bend a rod or worse! There are lots of resources on the web to get some better guidance from. Do yourself a favor and do some research before you experiment on your ride. The research is free, how much does a reman 7.3 cost?