sometimes a dose of kerosene and Marvel Mystery Oil and/or ATF fluid and let it roll around a bit with the starter will flush out a LOT of crap..but it looks as tho yes you had some water in that engine for some time..I'd be leery of the trans/cross shaft compartment just the same, and finals as well. Finals are usually 80w90 but you can't tell what water you might have in there too..an old Cat mechanic told me once-"fix it right,fix it once" (Ontario Bob-RIP)
