Another update..................................
After many headaches and wallet pains, I think the oil and water problem has been fixed.
Took the boat out yesterday and ran it hard, around 3800 rpms for about 10 miles, stopped a couple of times to check the oil ..........no foaming (yee ha ). The heads were checked and reworked, we doubled the intake manifold gasket, tore the top end off twice and refit the gaskets,so last week after a test run
and still oil in the water, we docked and took the exhaust manifolds off again. It was a bright sunny day and at the angle the manifold was setting you could see a rust streak in the center port, we plugged up manifold and run water into the the hose end of the manifold and low and behold air bubbles and water started appearing, found the problem. Bought two new OSKO manifolds, put them on.
I set and wonder that maybe I should have the manifolds checked first, it may have saved me some time and money. Live and learn, why do I always take the hard road and not the easy one?
Scratch my back with a hacksaw..........................