340 Hydraulic lock inspection update...

pull the oil drainplug, water will come out first. do a cranking compression test, it will reveal bad head gasket and info on compression. a good head gasket is the felpro 1008 HP
By 'oil drain plug', I'm assuming you mean the sump plug? If there's no water in the oil, does it mean the water might all be contained in the cylinders?