Well I got the engine out and the gearbox & clutch back off and the engine back up on the stand with the sump off. There was tons of water in the sump along with oil that had taken on a congealed fatty white look to it. I think I've sussed where the problem is too. I suspect that the internal seal on my bike carb manifold isn't good enough and water is coming thru the head behind cylinder 4 then seeping across the manifold and down into the cylinders to then go down thru the pistons and into the sump
Can anyone suggest a better way to make sure the internal inlet seal is spot on before I re-assemble the engine? I'd hate to have to put it all back together and in the car to find out the problem isn't fixed
also is there a better way to get the water out of the block/pistons other than using tons of wd40 to repel all the water out?