Sorry guys for taking so long getting back.
I was Thanksgiving day weekend in Canada, and I was out of town.
Also I am middle of perusing other career so that gives me more headache than this engine issue I'm having.
Everyone has valid points and directions I should take. Thank you for spending time with valid inputs.
Having said that, as much as I want this car running, I'm tired of it as well. All this should have been done couple months ago.
Here is what is happening in brief summary.
1. Old engine is not usable. I suspect block is bad.
More info on,
http://www.xoutpost.com/1082146-post22.html
2. Seller is somewhat cooperative, but in the end, I don't think I can return the engine and get refund. Also I've paid the engine with cash (to save tax but very bad decision. kicking myself...) so no such credit card dispute I can do.
3. Seller is telling me that crank the engine to get all the water out and it should be fine.
4. BTW, seller (the person I've dealt with) is on vacation until Oct 22. which I knew before. He isn't trying to run away from me.
5. What I know is Cyl 1-8 are clean except 3 with water. No water was fond on lower oil pan. No water was found when valve cover was removed.
6. when we hand crank the engine, there is some resistance at certain point and it's difficult to make full revolution. Not sure it's due to corrosion on piston or bore, or just fighting compression with water in.
7. what I would like to do is, get all the water out first and do hand crank compression test, then hook up starter then compression test again.
8. if numbers are good from #7, then install the engine.
As much as I would like to remove head and do visual inspection on bank 1, there isn't much space nor time with it anymore...
As for warranty statement,
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1. Engines are guaranteed to be in good operating condition with reasonable limits of specifications for 30 days* as stated by the seller (i.e., oil pressure, compression and oil consumption). Only the crankshaft, block, heads and valve train are covered under this guarantee. Accessories such as water pump,.................
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Obviously engine was not in "guaranteed to be in good operating condition" when I received it but it's beyond 30 day mark. It was more like DOA and how this implies to my case...