Water gets in the cylinder a couple of ways --- Head gasket -- or cylinder wall...
I'd be magna-fluxing that block.
8:1 Compression.... Jim -- ya just can't tune that "up".... any cam at all and it's not going to make any cylinder pressure... Are you sure that's the static compression? I've seen blower motors with more compression than that! LOL
Forget the pan... it's a leaker now... hang it on the wall and get good laughs from it. Better yet - hang it in front of a window so the sunlight shines thru!
